US pointed to negative consequences of US sanctions for dollar

Countries against which the United States imposed economic sanctions are trying to reduce their dependence on the dollar and are switching to using other currencies for settlements with partners. This is indicated in a review by the US Congressional Research Service, reports RT.

The document states that the most serious negative impact on the dollar will be the fact that the United States will face a number of economic consequences, including rising borrowing costs.

According to analysts, Washington has begun to use the dollar more often to achieve foreign policy goals, including restricting access to the American national currency and its financial markets for Iran, Russia and Venezuela.

Experts also believe that the restrictions may have a number of other undesirable consequences for the United States, for example, countermeasures by states.

Earlier, the former head of Morgan Stanley Asia, Stephen Roach, suggested that by the end of 2021 the dollar exchange rate would decline significantly. The economist claims that in a bad situation, the American currency could fall in price by 35 percent. The prerequisites for this, he called the growing current account deficit in the US balance of payments, the strengthening of the European currency, as well as the inaction of the US Federal Reserve System.

/Media reports.