Senator claims American policy is threatening dollar

(MENAFN) In a recent interview with journalist Tucker Carlson, Republican Senator Mike Lee expressed grave concerns over the impact of current United States policies on the global status of the dollar as the leading reserve currency. Lee highlighted what he described as the first significant challenge to the dollar's dominance in recent history, attributing it to the United States' approach to unilateral sanctions and its broader geopolitical strategies.

During the extensive two-hour interview streamed on Carlson’s YouTube channel, Senator Lee argued that the imposition of unilateral sanctions by the United States has undermined the legitimacy of the international rules-based order that Washington has long purported to uphold. He pointed out that these policies have inadvertently united major global players like Russia, China, and Iran against the dollar, particularly in energy transactions, thereby eroding the dollar's historic role in global trade.

Lee underscored the seismic shift in global economic dynamics, noting that while two decades ago all oil transactions were predominantly conducted in dollars worldwide, this paradigm is shifting. He warned that this trend poses a significant threat to the strength and influence of the United States dollar, a cornerstone of America's economic power and global influence.

The senator emphasized the implications of these developments, highlighting that the United State's actions intended to safeguard its economic and military security have paradoxically exposed vulnerabilities. He referenced Russia's response to being cut off from the Western financial system and having its foreign reserves frozen in 2022 as a pivotal moment that accelerated global movements away from dollar-denominated transactions.

Lee concluded by cautioning that while the United States aims to maintain its dominance through these measures, it risks weakening the very structures it seeks to protect. He urged a reconsideration of current policies to preserve the dollar's status and mitigate potential economic repercussions for the United States.

The senator's remarks underscore a growing debate over the implications of United States foreign policy on global economic stability and the future of the dollar in international finance. As geopolitical tensions evolve and economic alliances shift, the repercussions of these developments on global trade and financial markets remain a critical area of concern for policymakers and economists alike.

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