Yellen’s Warning: U.S. Foreign Policy Pushes Nations Toward Dollar Alternatives

Janet Yellen, U.S. Treasury Secretary, warned during a House Financial Services Committee session that U.S. foreign policy is driving countries to seek alternatives to the U.S. dollar. She stated that America’s increasing use of sanctions to freeze sovereign nations’ assets is causing them to distance themselves from the global reserve currency. Yellen highlighted that the more sanctions are utilized, the more nations will explore financial transactions without the dollar. This issue gained prominence after the U.S. and its allies froze approximately $300 billion of Russia’s assets in response to its invasion of Ukraine. In February, Yellen suggested that these assets should be released to finance Ukraine’s long-term reconstruction, framing it as a decisive response to what she called Russia’s unprecedented threat to global stability.

Source: dailyhodl.com