By Savannah Hamilton
Editor’s note: The opinions expressed here are those of the authors. View more opinions on ScoonTV
The “petrodollar” might sound like some academic jargon pulled from an economics textbook, but it’s one of the quiet pillars of American power.
For decades, the oil and energy trade — and by extension, most global trade — has been conducted in US dollars. And that arrangement has kept Washington’s influence strong, Wall Street liquid, and US Treasury markets busy with foreign demand.
The tide is shifting. Thanks to the war in Ukraine and the rise of BRICS, a growing number of countries are pushing back against what they see as dollar dependency.
The United States, once able to weaponize the dollar without much consequence, now faces a world that is actively seeking alternatives.
No, the dollar isn’t disappearing. Far from it. However, its supremacy is no longer unquestioned.
Petrodollar: A Quick Primer
The term “petrodollar” dates back all the way to the 1970s, when the US struck a deal with Saudi Arabia and OPEC to price and trade oil exclusively in dollars. From then on, countries needed USD to buy energy, which meant they stocked up and kept Uncle Sam’s economic engine revving.
This created guaranteed demand for the dollar, reinforcing its role as the world’s reserve currency (a status established in 1944) and giving Washington enormous leverage over the global economy.
Over time, the petrodollar became shorthand for dollar dominance — not just in oil but on a broader base — as the US dollar became the go-to for the majority of international trade.
And despite some setbacks in recent years, the latest IMF data shows that roughly 60% of global reserves are still held in dollars, and about 90% of forex transactions involve it.
So, yes, for over 80 years, the world has effectively run on dollars
Unfortunately, this dominance has also bred resentment. Top that off with the economic instability, only worsened by COVID, and it’s no surprise that some countries are looking for new ways to hedge their bets.
How the US Weaponizes the Dollar
Regardless of who’s in the White House, one of Washington’s favorite foreign policy tools has always been sanctions. And for decades, they’ve worked — precisely because of the dollar’s power.
AKA…If you want access to the world’s financial system, you play by America’s rules.
From Iran to Venezuela to Russia, sanctions have punished governments, frozen assets, and blocked trade. But here’s the catch — every time Washington pulls the sanctions card, other countries take note. And many have been side-eyeing the system for years.
Case in point: in 2000, Iraq tried selling oil in euros. Three years later, the US rolled in with tanks. (Coincidence? Depends who you ask — but the timing raised more than a few eyebrows.) And also soon after, Iran and Venezuela began openly calling for a petrodollar replacement.
Then by the 2010s, sanctions had pushed Iran into experimenting with non-dollar trade. And today, Russia — cut off from much of the Western financial system after invading Ukraine — is doubling down on alternatives, with plenty of help from Beijing, of course.
The lesson here? If the dollar can be weaponized against one, it can be weaponized against all. And that realization is now reshaping the global economy.
Hence…cue the scramble for alternatives.
BRICS: Building an Escape Hatch
The BRICS bloc, Brazil, Russia, India, China, South Africa, and, more recently, Saudi Arabia, Iran, UAE, Egypt, Ethiopia, and Argentina, has arguably become the biggest cheerleader for anti-dollar sentiment.
And this is a big deal as collectively, they represent the majority of the world’s population and a significant chunk of global GDP. Their core argument is straightforward: reliance on the dollar is a liability, and cracks in the system are showing.
Efforts to reduce said reliance are already visible. India and Russia are settling energy deals in rupees and rubles. Brazil and China are using their own currencies for bilateral trade. And most recently, Saudi Arabia has signaled openness to accepting the yuan for oil.
Meanwhile, BRICS is actively discussing working on building its own currency called the “Unit” and has started laying the groundwork for BRICS Pay, a blockchain-based cross-border payments system.
Of course, the “Unit” is still more hype than reality. Whether it’s gold-backed or blockchain-driven, there are challenges involved. Even among the inner circle, countries like India remain hesitant, well aware that turning such a concept into a functioning, trusted system is a messy business.
And in West Africa, there are also ongoing discussions about building a universal regional currency — but in this case, the goal is less about dethroning the dollar and more about escaping the shadow of the euro.
The proposed ECO currency has been in the works for years, aiming to unite the region’s economies and give them more independence from both European and American monetary policy.
But much like BRICS’ “Unit,” the ECO keeps getting delayed, tangled up in questions of sovereignty, inflation fears, not to mention who really gets to call the shots.
(Friendly reminder: the Euro took decades to build credibility and that was within one continent, not across rival superpowers.)
So is it realistic? Yes, but not anytime soon. What is worth noting, however, is the symbolism. The simple fact that these discussions are happening shows that the world wants out of Washington’s financial grip and is putting in the effort to make it work.
Trump’s Tariff Tantrum
Unsurprisingly, the US has no interest in watching the dollar’s dominance diminish. In fact, as an attempt to fight this in recent weeks, President Donald Trump slapped BRICS members with new tariffs and secondary sanctions, targeting India and Brazil in particular.
This month, his administration hit BRICS nations with tariffs, targeting India (25%, with another 25% looming by August 27, 2025) and Brazil (50%, with oil and aircraft exemptions). The goal was obvious — scare BRICS members out of flirting with non-dollar trade and further cosying up to China.
But oops, that tactic backfired. Instead of backing down, both India and Brazil stood firm. If anything, some would argue this only drew them closer to Beijing.
That said, diplomacy is still alive and well behind closed doors. For now, the real test is whether Washington’s threats push BRICS into retreat or accelerate the very dedollarization drive Trump wants to kill.
Sovereignty is the Real Story
Here’s where it gets even more interesting. All of this is not just about BRICS or the dollar. The bigger trend is all about sovereignty. Countries are sick of being bossed around by a single global superpower.
They want control over their own money, trade, and security, especially when said superpower is juggling record debt and an increasingly fragile financial system.
Take gold. For decades, nations have stored their bullion in places like New York, London, or Zurich. That’s now starting to change.
Serbia offers a striking example. Just in July, their National Bank announced plans to repatriate its entire gold reserve from abroad. This will make it the first Eastern European nation to hold all of its stash on home soil. Serbia has also significantly increased its gold holdings in general, much like many countries have. Beyond symbolism, this move reduces exposure to the kinds of political and financial risks highlighted by the freezing of Russia’s foreign exchange reserves in 2022.
Meanwhile, Italy and Germany are also exploring similar strategies. Because trust in “safe havens” like the once-unquestioned US dollar just isn’t what it used to be. Gold repatriation may sound old-fashioned, but it reflects a modern reality. Trust in the current system is fading.
This isn’t anti-Americanism or paranoia. It’s pragmatism. In a world of sanctions, debt crises, and geopolitical shocks, nations are simply taking steps to safeguard their economic security.
And that drive for sovereignty feeds the momentum behind BRICS and the broader push to reduce reliance on the dollar.
Is the Dollar Really Dying?
Not so fast.
Despite all the headlines and buzz, the dollar is still the global heavyweight. Wall Street retains its status as the world’s largest capital market, and there’s simply no real competitor at the same scale. In fact, no other currency comes close in terms of liquidity, global reserves, or trust.
The Euro? Respectable, sure, but Europe’s economy is smaller than China’s or India’s — not to mention politically fragmented. The yuan? Powerful, but China’s capital controls make investors nervous. And a BRICS currency? Let’s generously say…still in the “vision board” stage.
So no, the petrodollar isn’t collapsing, but it is starting to fade. What’s happening instead is a slow transition and a rebalancing of sorts. Think of it like the shift from landlines to smartphones. Yes, the old system still works, but newer, better options are multiplying.
Why This Isn’t a Crisis
Looking at the long-term picture, this isn’t bad news for global stability. It could be a positive development. Over the coming decades, we can expect gradual diversification — more oil sold in yuan, more trade settled in local currencies, and more countries bringing reserves closer to home. Yes, the dollar will remain central, but it will share space in a far more flexible financial system.
A multipolar currency world means no single country can weaponize money at will. It grants nations more freedom and options and forces Washington to adapt rather than dictate. Recognizing that reality sooner rather than later will be essential.
Yes, the US will lose some of its “petrodollar privilege,” but the alternative isn’t chaos. The dollar isn’t disappearing; it’s simply sharing the stage.
And honestly? That shift is probably overdue.
It’s Not the End, Yet
So, is this the end of the petrodollar? Not yet. Not today, and not tomorrow.
But the world is moving, slowly but surely, toward a system where the dollar is first among equals rather than untouchable.
BRICS isn’t about to dethrone the dollar overnight. Trump’s tariff threats won’t reverse the tide. What we’re really seeing is a rebalancing — less ideology, more countries saying, “We want control over our own money, thank you very much.”
The United States can fight that shift, or it can adapt. But one way or another, the days of unchallenged dollar dominance are slowly coming to a close.
Curtis Scoon is the founder of ScoonTv.com Download the ScoonTv App to join our weekly livestream every Tuesday @ 8pm EST! Support true independent media. Become a VIP member www.scoontv.com/vip-signup/ and
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