TechFlow news — In a recent CNN interview, U.S. Treasury Secretary Yellen said that China, Russia, and Iran are seeking ways to move away from the dollar after observing how the United States uses the world's reserve currency to impose financial sanctions.
Yellen stated that while weaponizing the dollar is a very effective tool for curbing bad behavior on the global stage, it could have unintended consequences—namely, pushing countries together to circumvent sanctions. The status of the dollar as the world's reserve currency might be threatened by actions from certain nations, but she emphasized that these countries would find it extremely difficult to identify an alternative that offers the same fundamental attributes.
"The U.S. Treasury market is the deepest, most liquid, and safest asset. The dollar is widely used. We have very deep capital markets and the rule of law, which are essential for a currency to be used globally in transactions. We haven't seen any other country possessing the underlying infrastructure and institutional framework required for its currency to serve the entire world."
