Bolton: "Mnuchin Opposed Economic Sanctions Fearing Decline of Dollar's Status"

▲Steven Mnuchin, U.S. Secretary of the Treasury [Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] John Bolton, former White House National Security Council (NSC) advisor, revealed in his upcoming memoir that Treasury Secretary Steven Mnuchin opposed expanding economic sanctions, citing concerns that "the global status of the dollar would decline."

According to Bloomberg on the 18th (local time), Bolton described in an excerpt from his recently released book that "Secretary Mnuchin obstructed strong economic sanctions against Venezuela, Russia, and China," and assessed that "he feared other countries would stop using the dollar." He added, "He was particularly concerned that tensions on the global financial system would become excessively high."

Previously, the United States imposed sanctions on North Korea and Iran, taking measures to prevent these countries from accessing the dollar-centered international financial network.

According to Bolton's account, Secretary Mnuchin argued that blocking other countries' access to the U.S. financial system would weaken the dollar's status. He added, "Countries like Russia and China might conduct transactions using the euro or other technologies, which could diminish the dollar's position as the world's reserve currency."

Bloomberg evaluated, "Mnuchin's stance clearly illustrates the biggest difference between Bolton's strong diplomatic policy approach and the policies of both the Democratic and Republican parties."

Bolton also mistakenly spelled Mnuchin's name as 'Stephen' instead of 'Steven' in his book. He stated that Mnuchin's greatest original sin was his concern over effective economic sanctions, emphasizing the U.S. economy over the foreign policy goals the Trump administration sought to achieve.

Secretary Mnuchin responded to Bolton's memoir with a statement, saying, "The Treasury Department has focused more on rogue regimes, human rights abusers, and terrorist groups than any other government," and added, "We have worked closely and continuously with the State Department on these matters."

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