[slt2021]

America decided to politicize and weaponize the USD and so the rest of the world decided to reduce usage of USD in international trade. They can use currencies of their trade partners to trade, so that:

  1. Currency flows are invisible to the Fed
  2. US sanctions cannot ban mutual trade in other FX

these two are the major ones, so if Brazil wants to trade with China, they don't need to use USD, they can hold each other's FX as some reserve and use it for trade