Sanctions are speeding up de-dollarization. Photo: Misión Verdad.
Economic “sanctions” are a double-edged sword for those who impose them. Last Sunday, April 16, US Secretary of the Treasury Janet Yellen said that those applied by the United States against Russia and other countries place the dominance of the dollar at risk because the blocked countries must seek an alternative.
“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,” Yellen said in an interview.
Even though it is difficult to escape from the gravitational pull of the US currency, because it is the sign of strength in the global financial system and because it is difficult to create the infrastructure required to escape from its influence in a short time, countries such as Russia and China have been working towards this goal.
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Yellen noted that “sanctions” are an “extremely important tool,” even more so when used by the United States and its allies as “a coalition of partners working together to enforce them.”
Asked about the possibility of using frozen Russian assets to rebuild war-torn Ukraine after Moscow’s military operation, Yellen said “Russia should pay for the damage it has caused.”
However, she pointed out that there are legal restrictions that prevent the easy disposal of Russian resources. In addition to their loss of effectiveness, the “sanctions” have accelerated a de-dollarization process that has been taking place for some time, which will eventually constitute a hegemonic loss for the power of the US empire.
Translation: Orinoco Tribune
OT/KW/SL
Misión Verdad
Misión Verdad is a Venezuelan investigative journalism website with a socialist perspective in defense of the Bolivarian Revolution
