China’s Ongoing Efforts to Dethrone US Dollar Revealed by White House Economic Adviser Nominee
Jared Bernstein, President Biden’s nominee to Chair the Council of Economic Advisors, has expressed concern that China is trying to remove the US dollar from its position as the world’s reserve currency. Speaking at his confirmation hearing, Bernstein explained that it is important for the US to maintain the dollar’s status due to the benefits it provides, including the ability to impose sanctions on other countries. However, he also acknowledged that being the world’s reserve currency comes with certain costs, such as higher export costs for US manufacturers. To protect the dollar’s integrity, Bernstein suggests raising the debt ceiling while also tackling spending and fiscal responsibilities. He emphasized that having a default option as a political tool could be harmful to the value of the dollar. Despite the challenges, Bernstein believes that the US should make every effort to preserve the dollar’s status as the world’s reserve currency.
Clever Robot News Desk 25th April 2023