Fun

US Treasury Secretary Janet Yellen Acknowledges Sanctions Weaponization Could Hurt Dollar Hegemony

News Feed - 2023-04-17 07:04:27

US Treasury Secretary Janet Yellen Acknowledges Sanctions Weaponization Could Hurt Dollar Hegemony


U.S. Treasury Secretary Janet Yellen talked about the dangers that sanctions based on the U.S. dollar might pose for the hegemony of the currency in international markets. According to Yellen, the government tries to use sanctions “judiciously,” as they can create a desire to find alternatives to the U.S. dollar. U.S. Treasury Secretary Yellen Talks Dangers of Dollar Weaponization


Janet Yellen, Treasury Secretary of the United States, has referred to the possible effects that continued use of sanctions could exert on the hegemony of the U.S. dollar in international markets. In an interview reviewed by Reuters, Yelled acknowledged that such a danger does exist in the long term.


On the issue, she stated: So, there is a risk when we use financial sanctions that are linked to the role of the dollar, that over time it could undermine the hegemony of the dollar, as you said. But this is an extremely important tool we try to use judiciously.


Yellen recognizes that such sanctions push countries like China and Russia to seek alternatives to the U.S. dollar, in order to conduct trades even when affected by these sanctions. However, she also explained that this is no easy task due to the unique traits of the dollar. Yellen expanded on this, declaring: We haven’t seen any other country that has the basic infrastructure – institutional infrastructure – that would enable its currency to serve the world like this.


This is the same conclusion that a report from the Bank of Russia, titled “Review of the Russian Financial Sector and Financial Instruments” reached, stating that substituting the U.S. dollar will be difficult due to the current structure of foreign trade. Sanctioned Countries Seek Alternatives


Even with all the difficulties, countries with individuals and entities sanctioned by the Office of Foreign Asset Control (OFAC) like China, Russia, and Iran, are starting to develop integration policies that allow them to conduct trade away from the U.S. dollar.


China and Russia have already started to conduct settlement transactions using the Chinese yuan, leveraging specially designated banks as clearing entities to facilitate these payments. In his recent visit to China, Brazilian President Luiz Inacio ‘Lula’ da Silva called for developing nations to abandon the U.S. dollar and for BRICS to establish a new currency.


The insurance of a BRICS currency will be debated at the next BRICS summit, which will be held in South Africa in August, according to statements from a Russian State Duma official. Russia and Iran are also finalizing an agreement to deepen their trade collaboration, avoiding the crippling sanctions that the U.S. has enacted against them. Tags in this story Bank of Russia, Brazil, brics, China, Dollar Hegemony, Iran, Luiz Inacio Lula da Silva, OFAC, Office of Foreign Asset Control (OFAC), Russia, treasury secretary janet yellen, U.S. dollar, U.S. Treasury


What do you think about U.S. Treasury Secretary Yellen’s stance on sanctions and the future of the U.S. dollar? Tell us in the comment section below. Sergio Goschenko


Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. China Opposes Recent US Sanctions for Chinese Firms, Criticizes "Long-Arm" Jurisdiction Policies ECONOMICS | 16 hours ago De-Dollarization: China, Brazil Can Be Instrumental in Building Less Centralized World With No Hegemony, Says Lula"s Adviser ECONOMICS | 21 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, Alexandros Michailidis / Shutterstock.com Previous articleChina Opposes Recent US Sanctions for Chinese Firms, Criticizes ‘Long-Arm’ Jurisdiction Policies Next articleNFTs Will Persist for as Long as Communities Are Willing to Use Them — Lostworlds Co-Founder Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItSEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale


Grayscale Investments" CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is "a Matter of When and Not ... read more.Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher

News Feed

DeFi platform Hedgey Finance hit by $44 million exploit
Zoltan Vardai10 hours agoDeFi platform Hedgey Finance hit by $44 million exploitOver $500 million worth of digital assets were lost to hacks and exploits in Q1 2024.1551 Total views8 Total sharesListen to article 0:00New
Bitcoin, Ethereum Technical Analysis: Crypto Bears Keep BTC Below $30,000
Bitcoin, Ethereum Technical Analysis: Crypto Bears Keep BTC Below $30,000 Bitcoin was lower for a second consecutive session, as bears maintained recent pressure on crypto markets.
Meta denies claim more than half of Facebook crypto ads are scams
Stephen Katte2 hours agoMeta denies claim more than half of Facebook crypto ads are scamsAustralia’s competition watchdog has claimed 58% of crypto ads on Facebook are scams; Meta says the data is old and unreliable.12
Bitcoin, Ethereum Technical Analysis: BTC Consolidates Heading Into Easter Weekend
Bitcoin, Ethereum Technical Analysis: BTC Consolidates Heading Into Easter Weekend Following strong gains towards the end of yesterday’s session, BTC consolidated today, as
William Suberg9 hours agoBitcoin traders torn between breakout and $28K dip as BTC price stallsBTC price action keeps everyone guessing, while Bitcoin casually marks a major achievement on monthly timeframes.4973 Total v
CATO Institute: CBDC the ‘Single Largest Assault to Financial Privacy Since Creation of Bank Secrecy Act’
CATO Institute: CBDC the "Single Largest Assault to Financial Privacy Since Creation of Bank Secrecy Act" A central bank digital currency (CBDC) may turn out to be the “singl
Bill Regulating Crypto Mining Submitted to Russian Parliament
Bill Regulating Crypto Mining Submitted to Russian Parliament A draft law tailored to regulate cryptocurrency mining has been filed with the lower house of Russian parliament, the
The next ICO boom is coming — and it will be better than 2018
Lucas Kiely2 hours agoThe next ICO boom is coming — and it will be better than 2018Thanks to the ICO busts of 2018 and the SEC"s newfound attention for a raft of altcoins, scrutiny of new projects has become much highe
Tristan Greene6 hours agoNew research shows how brain-like computers could revolutionize blockchain and AIA CMOS-compatible neuromorphic computing chip could be on the horizon thanks to breakthrough research out of Techn
Kanye West Files Trademarks Describing NFT Technology After Denouncing the Digital Collectible Concept
Kanye West Files Trademarks Describing NFT Technology After Denouncing the Digital Collectible Concept According to trademark filings with the United States Patent and Trademark Of
Crypto Exchange Gemini Axes 7% of Its Staff in Second Wave of Layoffs
Crypto Exchange Gemini Axes 7% of Its Staff in Second Wave of Layoffs Gemini, the cryptocurrency exchange owned by the Winklevoss twins, is laying off more staff. According to repo
Jesse Coghlan8 hours agoBinance.US cuts third of staff as CEO Brian Shroder leavesThe staff cut and departure comes amid legal action from United States regulators.2815 Total views28 Total sharesListen to article 0:00New