When the US places financial sanctions it imposes the same action on its allies. Including the close allies. If you combine this with the increased activity on the field of sanctions we see something which might be overlooked. It is just due to the media rhetorics.
This is that the country or a firm that is sanctioned is moving into the hands of the enemies of the USA.
There are a few methods the USA can impose sanctions.
The first method is what we saw against Credit Suisse from Switzerland and ING from The Netherlands. They simply sued the financial institutions in the USA and the first have settled.
So with all those sanctions what is happening?
Well, first of all, are we seeing that countries are looking at alternative markets or to work around the sanctions.
This is a problem. After all, are sanctions not working if they are not obeyed by the world.
The Dollar is one of the most used methods by the US to punish countries. So are countries moving away from the US Dollar as the global reserve currency? Just look at the below graphic.
You see that the US Dollar is rapidly losing its reputation as a global reserve currency.