The US imposition of sanctions imposed against Islamic Republic and Russian Federation has endangered the dominance of US dollar in the global economy, because, the sanctioned countries are seeking an alternative for US dollar, Janet Yellen said in an interview with CNN.
“There is a risk, when we use financial sanctions that are linked to the role of the dollar, that, over time, it could undermine the hegemony of the dollar”, she opined.
She also noted that Washington’s use of economic warfare “does create a desire on the part of China, of Russia, of Iran to find an alternative” to the dollar.
Her remarks represent a significant public acknowledgment by a top level US government official that its increasing use of sanctions has fueled the growing the de-dollarization movement.