Dollar dominance is stronger because of sanctions, not weaker, says former Treasury official

• Sanctions support — not weaken — dollar dominance, former Treasury official Dan Katz wrote.
• Countries willing to accept the risk of sanctions signal to investors that they are safe, he added.
• Despite increased use of sanctions, the dollar's share of international transactions has grown since 2010.

Arguments that US sanctions are a threat to the greenback's strength fail to account for how such measures uplift the dollar, former Treasury Department adviser Dan Katz wrote in Barron's.  

In fact, hesitancy to use such measures would do more to undermine faith in the dollar, he added.