US Treasury Secretary Janet Yellen expects a slow decline in the US dollar as the reserve currency.
The statement was made in response to questions about the risk of dedollarization at the Housing Financial Services Committee on Tuesday.
Republican official Warren Davidson asked whether US sanctions could impact dollar transactions.
Answered Yellen, she admitted that such actions have prompted some countries to look for alternative currencies.
However, he added, the US dollar plays an important role in the world financial system and it cannot be imitated by other countries, including China.
The US has a very liquid open financial market, strong rule of law and the absence of capital controls that other countries cannot copy.
When asked whether the declining status of the dollar, Yellen said increased diversification in reserve assets is to be expected in an expanding global economy.
It is a natural desire to diversify reserve holdings, but the US dollar is the dominant reserve asset, he said.
This explains that although Yellen admits that the share of the dollar in global reserves is reduced, but the king of the currency has no substitute.
The US dollar's status as a reserve currency has been in the headlines for the past few months amid international dedollarization efforts by many countries, especially the BRICS economic bloc.
