The USD IS the world reserve currency, and the dollar IS the "petrodollar". But it doesn't mean "will always remain so". There have been happening major things recently that challenges the status of the dollar. All of this happened only in March this year: Brazil and China announced an agreement to conduct all future trade in their own currency. India purchased Russian oil in UAE dirham and Russian ruble. Saudi Arabia announced a "dialogue partner" agreement with Shanghai Cooperation Organization. Iran (hold 10% of world oil reserves and 15 % of gas) agree to re-establish diplomatic relations with China. And even French oil company Total Energies announced completion of purchases of LNG from China using Chinese Yuan.
As well as the fact that BRICS is developing a gold backed currency, which will be the alternative in cases where trades are not done with dollar.
The point is that things are starting to change for the dollar. The dollar WILL inevitably lose it's world reserve status eventually. I think this process has already begun. How long it takes is not easy to say. It will take significant amount of time. It will happen gradually. And as it does, America will gradually lose it's grip on its current world domination. Nothing lasts for ever. That's just the nature of things.
Also Russia is a main producer of energy and commodities. Regardless of politics. They produce value that other countries need. Plain and simple. Even if, and even especially if Russia is excluded from Western countries, there will be an incentive to trade with the Russian economy in whatever currency that trade will demand, which is less likely to be dollar.
I'm not sure it will take that long for the US to contract. As the BRICS keep doing their own thing, USD will gradually lose it's reserve currency status, and will have to finance it's own money printing instead of exporting inflation. It won't happen over night of course, but it will happen little by little. I think this will lead to more nationalist and less globalist politics, which mean that they will start minding their own business to a larger degree than currently. However, someone else will take their place in international affairs. And I highly doubt this will lead to better things ([for me], it is impossible to exclude bias as we all live in this world) than whatever the US accomplished. Just imagine, what would happen if USA left NATO. Eventually it will happen.
I think they will do whatever they have to do. However long it takes. De-dollarization has already been going on for years. Maybe they won't have a brick ready in a blink of an eye. But they still will find other ways that to use the dollar. They are already doing it. I don't know what will compete with the dollar. But the BRICS official plans, in addition to the on-going de-dollarization shows that there is an incentive. It has already started. And therefore it will happen.
Sure there are challenges, but BRICS illustrate that there is a clear incentive in a significant part of the world to de-dollarize. And while it is true that there are currently no feasible alternatives to the USD, it is also true that the BRICS countries have already started their de-dollarization years ago, as USD in proportion of foreign reserves have been steadily declining. So regardless which currency, or basket of currencies will take the space the USD leaves behind, it will be something . The current consumer driven economy might come to a halt as well. Both because of global conflicts and political sanctions, and because of climate politics that demand a decreased use of energy and consumption. The world is changing. It will be different in 20 years than it has been for the past 20 years. If political tension increase and spread for an extended amount of time, then the global economy will be a lot more segmented than it has been with the recent globalism. And that is highly likely what the BRICS nations are anticipating when they develop their own gold backed currency.
They will use a gold backed brick. That's the intention. Because no one trust each other within the BRICS as well.
Bottom line is, the BRICS are in fact developing a new means for settlement because they want out of the USD network. Several recent events support the fact that BRICS and accosted economies want to reduce exposure to the USD. So there is an incentive. And their plans to have a gold based currency has even been officially announced. Therefore, this seems to be the beginning of the USD losing it's dominance. It will take a long time. But it will eventually happen. And this might be the beginning.
And it's not just about the BRICS, but also many of their close trade partners.
If they do manage to develop a gold backed currency that can replace the USD for trades within their trading network, then their allies and trading partners will use this currency for trade as well as USD. We will essentially have two reserve currencies. Which means the dominance of the USD will decrease.
What if the trade is settled in gold, or a gold backed brick currency rather than the USD? Of course, I understand the practicality of the USD. But you have to factor in the political risk. Political tension between major global superpowers have increased lately. This is the very reason the BRICS are developing their own means for trade settlement. They want to mitigate the risk of being exposed to the dollar.
If the BRICS to some extent break away from the "Western" economy, then globalism is split in half. That would in itself reduce the role of the USD. If the BRICS start trading in one common BRICS currency, then that will increase trust in that currency. If trust is increased, then also Western investors will have more of their wealth denominated in that currency simply to diversify risk and not have all wealth in a decreasingly powerful and increasingly risky dollar.
Of course, this is speculation. We are talking about a potential future over the next few decades. But whatever happens, the world in 20 years will not be what it is today. And from what I can see, there are certain things happening right now that points in the direction of the dollar losing its dominance.