Jeffrey Sachs Claims US Is Weaponizing the Dollar
In a recent gathering of BRICS, renowned economist Jeffrey Sachs discussed how Washington's unilateral sanctions have transformed the dollar into a potent political weapon. Read Full Article at RT.com.
TroibNews 
The dollar has been transformed into a tool of “aggressive form of policy,” stated renowned American economist Jeffrey Sachs.
In a virtual address on Thursday to a gathering of BRICS finance ministers and central bank governors meeting in Moscow, Sachs remarked that the US government has weaponized the dollar instead of allowing it to function as a medium of exchange or a store of value. The officials convened to deliberate on enhancing the international monetary and financial system in anticipation of the BRICS 2024 summit in Kazan later this month.
Sachs observed that the weaponization of the dollar is evident in the seizure of frozen Russian assets. He also cited the US government's actions regarding the freezing of Iranian, Venezuelan, Afghan, and other state funds.
As part of its sanctions campaign linked to Ukraine, the US and its allies have frozen approximately $300 billion in Russian central bank assets, with around $5 billion held in American banks. In April, President Joe Biden enacted legislation permitting the seizure of Russian funds in the US for transfer to a fund for Ukrainian reconstruction.
“You can’t use the dollar as a payments mechanism,” Sachs stated, pointing out that a president can unilaterally sign orders to seize billions of dollars in Russian assets. He concluded that the US currency has become “an instrument of aggressive form of policy.”
“I’ve said to my own government for the last 15 years ‘Stop doing it, this is crazy, it will destroy trust in the dollar.’ You can’t go on with the system like this, it’s not just Russia,” he continued.
Sachs noted that China is seeking to engage in normal trade without the threat of US sanctions. However, even though Chinese banks are part of the SWIFT system, they remain cautious of being excluded from the international financial network.
“So, the point is we need alternatives, this is clear,” Sachs asserted. “Of course, countries need non-dollar payment mechanisms. We are going to need some quick, special-vehicle entities that are not also engaged in the dollar payment systems… entities that cannot be directly sanctioned…”
He emphasized that “the best alternative would be if the US recovers sense, decency and legality and stops imposing unilateral sanctions.”
Sachs classified US actions as “absolutely incorrect” and contrary to international law and the UN Charter, highlighting his role as president of the UN Sustainable Development Solutions Network.
Camille Lefevre for TROIB News
In a virtual address on Thursday to a gathering of BRICS finance ministers and central bank governors meeting in Moscow, Sachs remarked that the US government has weaponized the dollar instead of allowing it to function as a medium of exchange or a store of value. The officials convened to deliberate on enhancing the international monetary and financial system in anticipation of the BRICS 2024 summit in Kazan later this month.
Sachs observed that the weaponization of the dollar is evident in the seizure of frozen Russian assets. He also cited the US government's actions regarding the freezing of Iranian, Venezuelan, Afghan, and other state funds.
As part of its sanctions campaign linked to Ukraine, the US and its allies have frozen approximately $300 billion in Russian central bank assets, with around $5 billion held in American banks. In April, President Joe Biden enacted legislation permitting the seizure of Russian funds in the US for transfer to a fund for Ukrainian reconstruction.
“You can’t use the dollar as a payments mechanism,” Sachs stated, pointing out that a president can unilaterally sign orders to seize billions of dollars in Russian assets. He concluded that the US currency has become “an instrument of aggressive form of policy.”
“I’ve said to my own government for the last 15 years ‘Stop doing it, this is crazy, it will destroy trust in the dollar.’ You can’t go on with the system like this, it’s not just Russia,” he continued.
Sachs noted that China is seeking to engage in normal trade without the threat of US sanctions. However, even though Chinese banks are part of the SWIFT system, they remain cautious of being excluded from the international financial network.
“So, the point is we need alternatives, this is clear,” Sachs asserted. “Of course, countries need non-dollar payment mechanisms. We are going to need some quick, special-vehicle entities that are not also engaged in the dollar payment systems… entities that cannot be directly sanctioned…”
He emphasized that “the best alternative would be if the US recovers sense, decency and legality and stops imposing unilateral sanctions.”
Sachs classified US actions as “absolutely incorrect” and contrary to international law and the UN Charter, highlighting his role as president of the UN Sustainable Development Solutions Network.
Camille Lefevre for TROIB News
