Treasury Secretary Janet Yellen said to expect a gradual decline in the dollar's share of global reserves.
"I would say there is virtually no meaningful workaround for most countries for using the dollar as a reserve currency," Yellen replied.
"We should expect over time a gradually increased share of other assets in reserve holdings of countries — a natural desire to diversify," she said.
The US dollar's reserve status has seen gradual erosion for two decades, and it saw a steep decline in 2022 even though its strength in international trade remains unchallenged, Eurizon SLJ Asset Management said in April.
But US lawmakers aren't helping the dollar's cause, Yellen suggested.
Persons:
Janet Yellen, —, Warren Davidson, Yellen, Vicente Gonzalez, aren't
Organizations:
Service, Financial Services Committee, Rep, US, Management
Locations:
Ohio, China, Texas, France