"Janet Yellen now says Americans should anticipate a decline in the USD as the world's reserve currency"

Yahoo News reports that "Janet Yellen now says Americans should anticipate a decline in the USD as the world's reserve currency," although it should still remain the dominant currency. From the article:

    The U.S. dollar saw an 8% decline in its share of global reserves in 2022 — causing some to question whether the dollar’s days of dominance are over.

    Treasury Secretary Jannet Yellen gave her two cents on the matter during a congressional hearing in June — stating that no currency currently exists that could displace the greenback.

    U.S. sanctions and foreign policy plays have inspired a backlash from China, Russia and other prominent countries who may be keen to dethrone the dollar.

    Yellen remains adamant that “it will not be easy for any country to devise a way to get around the dollar.” She did, however, warn that the dollar’s share of global reserves may continue to decline as countries look to “diversify.”

The article goes on to note:

    Prominent powerhouses India and the United Arab Emirates (UAE) have officially started trading with each other in their local currencies. The Indian government announced on Monday that the country’s leading petroleum refiner, Indian Oil Corp., used the local rupee to buy one million barrels of oil from the Abu Dhabi National Oil Company — not the greenback.

    At the 14th BRICS Summit last year, Russian President Vladimir Putin announced measures to create a new “international currency standard.” Meanwhile, China has been urging oil producers and major exporters to accept yuan for payments, and major oil exporter Saudi Arabia has said it’s “open” to the idea of trading other currencies.

    Even long-time allies, like France, have made non-dollar transactions since the U.S. ramped up its sanctions. In April, French President Emmanuel Macron said Europe must reduce its dependence on the U.S. dollar in order to keep its “strategic autonomy” and avoid becoming “vassals” (subordinate) to America.

    When quizzed on the impact of these trends in front of the House Financial Services Committee, Yellen admitted that U.S. sanctions have motivated some countries to seek out currency alternatives — but she was adamant the greenback will remain dominant.

    “The dollar plays the role it does in the world financial system for very good reasons that no other country is able to replicate, including China,” she said. “We have deep liquid open financial markets, strong rule of law and an absence of capital controls that no country is able to replicate.”