It’s been just revealed that the American sanctions are pushing countries to consider alternatives to the US dollar. Take a look at more reports about this below.
Countries consider alternatives to the US dollar
Treasury Secretary Janet Yellen just said that it’s reasonable to expect other countries to gradually look for alternatives to the US dollar as the geopolitical world stage evolves.
It has been just revealed the fact that speaking during The Annual Testimony of the Secretary of the Treasury on the State of the International Financial System meeting, Yellen stated the fact that US sanctions might push other countries to diversify from the dollar – though she says it won’t be easy for them.
Answering Texas Representative Vicente Gonzalez Jr., who said that US sanctions may be causing a “paranoia” in other countries, Yellen conceded it was true that the government’s foreign policy was forcing other nations to form contingency plans for doing business.
“It is true that when we impose sanctions, countries that are afraid that can be the subject of those sanctions, are motivated to look for other tools other than the dollar to engage in transactions. So that’s something we have to accept. It is much more difficult to find other tools to make payments in other currencies when we work jointly with partners…”
He continued and said the following:
“But I would say there is virtually no meaningful workaround for most countries for using the dollar as a reserve currency.”
Killing of the US dollar
According to the latest reports, it seems that China says it’s fully backing a major expansion of the global economic alliance known as BRICS.
The country is ready to “bring more like-minded partners” into BRICS, which currently consists of Brazil, Russia, India, China, and South Africa, says Chinese foreign ministry spokesperson Mao Ning.
The state-backed outlet China Daily stated the fact that Ning made the statement while commenting on reports that Venezuelan President Nicolas Maduro is pushing to add Venezuela to the group.
