The U.S. sanctions bill targeting Russia expands sanctions but could heighten concerns about the dollar, writes The New York Times.

The sanctions bill against Russia presents the Trump administration with a dilemma: lawmakers are seeking to unleash a further financial war at the very moment when the administration fears that the broad use of sanctions could undermine the dominance of the U.S. dollar.

The bill, introduced by Senator Lindsey Graham before his death, is aimed at imposing sanctions on Russia and its allies and potentially expanding the scope of sanctions, including tariffs for buyers of Russian energy products. The White House said the scope of the sanctions could broaden to include Iran and Hezbollah. Republicans and Democrats expressed optimism that the bill could be passed this summer.

Harsh sanctions could prompt other countries to seek alternative currencies in order to bypass the broad influence of the U.S. government and soften the potentially devastating consequences for their economies. Sanctions can also create compliance challenges for American banks, which must ensure they do not process payments to individuals or companies placed on a blacklist.

According to the International Monetary Fund, 57 percent of global foreign exchange reserves are still held in U.S. dollars. Nevertheless, with growing interest in alternative currencies, the Trump administration wants to ensure that the dollar retains its reserve-currency status and is taking steps to preserve that role.