The US Congress held a hearing titled “Dollar Dominance: Preserving the U.S. Dollar’s Status as the Global Reserve Currency”, as countries around the world join the de-dollarization rebellion against Washington’s “exorbitant privilege”.

Michael Faulkender, who served as Donald #Trump’s assistant secretary of the àTreasury for economic policy, declared in the session, “As assistant secretary, I told my team that the Treasury secretary proudly states that the dollar will never not be the world’s reserve currency, and our job is to make sure that’s true”.

Also present in the hearing was Daniel McDowell, an associate professor in the political science department at Syracuse University in New York, and author of the book “Bucking the Buck: US Financial Sanctions and the International Backlash Against the #Dollar”.

McDowell argued that, by imposing more and more sanctions on countries around the world, Washington is actually weakening the dominance of the dollar.

The US has sanctions on nations that represent more than one-third of the global population and 29% of the world’s GDP.

The two-hour hearing did not address possible plans for the BRICS bloc to create a new international reserve currency. Instead, the participants only spoke of existing national currencies like the Chinese renminbi, Russian ruble, or euro as potential challengers to the US dollar – while ultimately dismissing all of them.

The idea that BRICS could develop an international currency (similar to John Maynard Keynes’ idea of the Bancor) was not even raised as a possibility.
#US #Exonomy #Dedolarization #Sanctions #BRICS #Russia #China #Iran #Politics #Biden
https://geopoliticaleconomy.com/2023/06/20/us-congress-dollar-dominance-hearing/