Sanctions are no foreign policy magic wand

Being at the center of the global financial system has its power and privileges. The United States holds a unique place in the financial world as the clearinghouse for most of the world’s business transactions. The U.S. dollar is the currency of choice for corporations far and wide, which means that establishing positive relationships with the U.S. banking system is absolutely essential if those corporations want to grow.

U.S. officials understand how powerful the U.S. financial system is to global trade and commerce. They also understand that this power can be leveraged to push U.S. foreign policy priorities — and punish other countries that aren’t on board.