I recall when Russia wanted to purchase oil from the UAE, but due to sanctions Russia can’t conduct the transaction in dollars (often or not is used as the intermediary). Instead the Dirham was used as a replacement currency to acquire it, however it involved exchanging each other’s currency. I mean, why can’t just countries use each other’s own currency to purchase oil to steer away from the petro-dollar?
In that case, counties will just exchange each other’s money directly (like for instance if Germany wants oil from Oman, then the transaction is done via Rial to Euro and vice versa) would that mean it’ll be a multipolar economy since each nation uses their own currency to pay for the imports rather than using US Dollars so much? That was the move BRICS used on them trying to not rely on USD a lot.
Because the USA didn’t meet the expectations to stabilize the international economy following the Bretton Woods agreement and hadn’t sufficient gold reserves to back the US dollar value.
Nixon and Kissinger came with a solution to back the US dollar value with oil from Arabic countries in exchange for military protection. Nixon Shock
BRICS is then a threat to the US economic dominance, Iran and Venezuela sold their oil in other currencies, no wonder Trump was after them under false pretense.