The Secretary of the United States Treasury has issued a warning to countries who are looking for transactions that "don't involve the dollar," worth 34,000,000,000,000 dollars.
According to Janet Yellen, the Secretary of the United States Treasury, the United States' foreign policy is pressing nations to discover alternatives to the United States dollar.
According to Yellen's latest testimony before the House Financial Services Committee, the United States' growing use of sanctions to freeze the assets of sovereign states is driving countries away from the world's reserve currency.
When it comes to sanctions, we have extremely strong measures that are accessible to us because of the significant role that the dollar plays in international trade. The power to disable the ability of foreign banks, other enterprises, or people to conduct transactions via the financial system of the United States of America...
As a result of the increased use of sanctions, an increasing number of nations are searching for alternative methods of conducting financial transactions that do not use the dollar.
As a direct reaction to Russia's invasion of Ukraine, the United States and its allies imposed sanctions that resulted in the freezing of around $300 billion worth of assets held by Russia. This raised the amount of attention that was paid to the use of sanctions.
Yellen said in February that she is of the opinion that such assets need to be unlocked and transferred to Ukraine in order to provide funding for the long-term rehabilitation efforts of the nation.
"It is important and imperative for our alliance to find a method to unlock the value of these assets that have been paralyzed in order to help Ukraine's ongoing resistance and long-term rehabilitation efforts.
Regarding international law, economics, and morality, I am of the opinion that there is a compelling argument for going ahead. This would be a definitive reaction to the unparalleled danger that Russia poses to the stability of the global community.
