Yuan Rises in Global Influence Against Greenback
US Treasury Secretary Yellen admits US sanctions risk hurting dollar hegemony
By: Toh Han Shih
In a recent interview, US Treasury Secretary Janet Yellen said the US deployment of sanctions risks hurting the world dominance of the US dollar. Recent events show the risk is fast becoming reality. On April 17 at the Council of Foreign Relations in New York, the European Central Bank President Christine Lagarde warned that the leading international currency status of the euro and US dollar should no longer be taken for granted.
“The US dollar is still the world’s reserve currency, but its dominance is slipping,” said a commentary on the website of US Global Investors, a US investment management firm, by its chief executive officer and chief investment officer Frank Holmes on March 24. Indeed, major OPEC nations and BRICS members (Brazil, Russia, India, China, and South Africa) are either accepting yuan already or strongly considering it, Holmes pointed out. Russia, Iran, and Venezuela account for about 40 percent of the world’s proven oilfields, and sell their oil in exchange for yuan, he added.
“What this suggests is that the yuan’s role as a reserve currency will continue to strengthen, signifying a broader shift in the global power balance and potentially giving China a bigger hand with which to shape economic policies that affect us all,” Holmes said…