Yellen was asked during an interview on Sunday by CNN’s Fareed Zakaria about the efficiency of the anti-Russia sanctions and about Washington’s history of what he described as the “weaponization of the dollar.”
According to Russia Today, Zakaria cited recent statements by Brazil’s President Lula da Silva and other politicians about the risk of dependency on the US currency. He asked whether the present time would be remembered as the moment when “the dollar’s hegemony and its status as a reserve currency began to falter.”
Yellen acknowledged that the use of financial sanctions “could undermine the hegemony of the dollar” in the long run, but promised that Washington was using this “important tool” judiciously and with the backing of its allies.
However, no other currency is ready to replace it, she reckoned.
Amid the US-led Western sanctions, different countries are shifting away from using the US dollar and are forming new economic blocs in defiance of the US sanctions.
In the latest attempt tp ditch the US dollar in foreign trade, earlier this month on April 1, India’s central government unveiled its new Foreign Trade Policy, which was expected to facilitate greater trade, boost manufacturing, help to shift away from the US dollar, and make the rupee a global currency.
MNA/PR