US Treasury Secretary Defends Dollar Dominance as Emerging Markets Push to De-Dollarize
U.S. Treasury Secretary Janet Yellen has
defended the dominance of the
U.S. dollar amid rising efforts by emerging countries to de-dollarize.
Brazilian President Luiz Inácio Lula da Silva, in particular, is set to raise the issue of
de-dollarization at the next BRICS meeting.
“There is a very good reason why the dollar is used widely in trade,” Yellen argued.
Brazilian President Luiz Inácio Lula da Silva, who also attended the summit,
appeared on a panel with
South African President Cyril Ramaphosa. Reiterating his call for countries to abandon the U.S. dollar and trade in
their own national currencies or other alternatives, the Brazilian leader stressed that the use of the
USD in international trade puts countries like Brazil at a disadvantage.
Commenting on emerging countries, including Brazil, pushing for de-dollarization,
Yellen noted that it would be challenging for countries to find a viable alternative to the U.S. dollar, which has dominated global trade for decades.
While Yellen defended the U.S. dollar, she acknowledged in April that over time, the use of financial sanctions
“could undermine the hegemony of the dollar.”
Meanwhile, a
growing number of emerging markets are ramping up efforts to
de-dollarize, including members of the
BRICS economic bloc and the
Association of Southeast Asian Nations (ASEAN). T
he BRICS also has a proposal for a common currency that is expected to be discussed at the upcoming summit in August.
