> The dollar as an instrument of offensive diplomacy is now weakened

How strong was it in the first place? Anyone can just accept dollars without worrying they'll be able to spend them - the dollar spends just about anywhere, the US only has control of whether US companies will do business with you.

There have been quite a few countries whose central banking had collapsed, and they decided to just adopt the dollar or euro as currency, to the disapproval of the respective power blocs, but its not like they could do anything about it.

The only risk here is money printing, but that's not a targeted weapon (if its a weapon in the first place)