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U.S. Treasury Secretary Acknowledges ‘Sanctions’ Contributing to Dollar Decline

Oluwasegun SanusiJuly 14, 20241 Mins read535

U.S. Treasury Secretary Acknowledges That 'Sanctions' on Russia Are Contributing to the Decline of the U.S. Dollar

U.S. Treasury Secretary Janet Yellen has made known the impact of ‘sanctions’ on the U.S. dollar, especially with the growing de-dollarization movement being led by the BRICS.

Yellen’s testimony was quite telling regarding the economic consequences for the U.S. from its ‘sanctions policy,’ particularly those imposed on Russia in 2022, which accelerated efforts by BRICS to lessen reliance on the dollar.

The more sanctions the U.S. imposes, the more countries will seek financial transaction methods that do not involve the U.S. dollar, Yellen said.

She observed that this has resulted in an increased number of developing countries looking at alternative options, which BRICS is capitalising on through its call for using local currencies whenever there is international trade.

According to the report, the BRICS alliance Russia, India, Brazil, China, and South Africa—are actively rooting for a shift from the dollar.

According to reports, the coalition will likely be pushing ahead with the launch of a gold-backed currency in what could be a far-reaching move toward advancing the establishment of a multipolar financial world.

A formal announcement of a new currency is expected during the next BRICS summit in October 2024, according to reports.