In a statement issued today, White House economist, Jared Bernstein says there is “some evidence” that China wants to weaken the US dollar. Moreover, Bernstein noted the efforts are aimed at diminishing the strength of the dollar as an international reserve currency.
Bernstein urged Congress to address the ongoing debate surrounding the US debt ceiling. Subsequently, protecting the value of the dollar amidst the campaign by BRICS nations to lessen its value.
White House Addresses Attempts to Weaken US Dollar
The US dollar has been a constant headline for the past few weeks. Specifically, due to the BRICS collective of countries seeking to do away with the currency with regard to internal trade. Consequently, the US White House says there is evidence that China wants to weaken the US dollar.
Specifically, White House Economist Jared Bernstein addressed the ongoing US dollar controversy. Moreover, Bernstein, who is a member of the White House Council of Economic Advisers, addressed the situation with the Senate Banking Committee. Additionally, Bernstein told senators that a resolution to the debt ceiling issue could preserve the greenback’s value.
“One thing we could really do to help both the dollar maintain its reserve currency status, but also to protect the value of the dollar would be to raise the debt ceiling,” Bernstein told senators.
The ongoing debt ceiling negotiations have been a point of emphasis for the White House. Conversely, there has yet to be traction on an agreed budget to incur a ceiling raise. Simultaneously, the international trade market is seeking ways to curb the use of the US dollar. Consequently, this is diminishing its value even more.