US Treasury Secretary Warning: Dollar hegemony is in danger

The US Treasury Secretary warned that the sanctions imposed against unwanted countries threatened the dominance of the US dollar.Janet Yellen believes that the dollar may lose its leading role in the global economy due to sanctions against Russia. Her words are quoted by CNN.

“When we use financial sanctions related to the role of the dollar, there is a risk that over time this could undermine the hegemony of the dollar,” she said.Yellen added that sanctions are the most important tool, they try to use it legally and according to circumstances, including to support allies.

She also pointed out that China, Russia and Iran logically have a desire to find an alternative to the dollar. But the dollar is being used as the world's currency "for reasons other countries have a hard time finding an alternative with the same properties," she said.

Unlike the targeted sanctions that have been used against Russia in years past, since the Russian attack on Ukraine, Western sanctions have been widespread, including SWIFT sanctions against some Russian banks and a ban on Russian oil imports by the UK and the US.