America: No Currency Can Replace Dollar.
According to Reuters, the US Treasury Secretary believes that the dollar has not lost its place in the global economy.
US Treasury Secretary Janet Yellen rejected the possibility of losing the dollar as a global reserve currency and trade currency.
In his statements before the US House of Representatives Financial Services Committee, the US Treasury Secretary tried to downplay the risk of de-dollarization in response to Russian sanctions.
At the same time, the American official said that we should expect a gradual increase in the share of other assets in countries’ reserves over time, and there is a natural desire to diversify in other countries.
The US Treasury Secretary admitted that the sanctions played a role in countries moving towards alternative currencies, but the dollar plays a role in the world financial system that no other country, including China, is able to replicate.
Previously, Russia, as a major exporter of fossil fuels, uranium, metals, food grains and chemical fertilizers, has turned to financial transactions with its trading partners in national currencies. India also adopted its own currency for trade with Russia last December. Saudi Arabia has recently followed such an approach.
