U.S. Treasury Secretary Scott Bessent defended the country's economy, pointing to the dominance of the dollar, which is involved in 89.2% of currency transactions. He noted that strong data on personal income, employment, and economic growth confirm the stability of the American financial system. Bessent stated in his post on platform X that the dollar is on one side of 89.2% of currency transactions, also adding that the overwhelming majority of stablecoins are pegged to the dollar, highlighting the growing importance of this currency among digital assets.
Considering that the yield on ten-year bonds has reached 5%, Bessent dismissed accusations that the Treasury's bond buybacks are aimed at suppressing yields. According to him, buybacks are necessary to improve market liquidity and manage the maturities of debt obligations. He emphasized that the total volume of the U.S. bond market exceeds $30 trillion, and such measures help maintain stability in this crucial financial sector.
Additionally, Scott Bessent pointed to Saudi Arabia's exit from the mBridge platform, which is backed by China, as confirmation of the dollar's dominance. However, the kingdom stated that it completed its participation after the planned trial period ended in May 2025, and the project continues to develop in other countries, making Saudi Arabia's exit more of a symbolic victory for Washington than a sign of failure for a broader initiative. Thus, Bessent seeks to dispel doubts about the resilience of the American economy and the dollar on the international stage.
Related articles
