As of today most of the transactions in the world need the US dollar as a common valuation mode. Meaning if India sells something to UAE then the invoice is valued in USD. This has made the dollar's share as an invoicing currency 3.1 times its share of world exports and 4.7 times its share of world imports. That is many non-US exporters and importers are invoicing in US dollars.
This is not only true for trade but also in financial transactions that are more sensitive to the economy. And due to these factors, it is the King of the Currency world. But due to the events in the past couple of years especially in 2022 when the Russia- Ukraine war erupted, the status has lost some value in the real world.
The actions taken by USA & Europe on Russia post the war made many countries wonder whether such dependence on a single currency is good. These queries and thoughts have resulted in some countries switching to local currency trade with Russian trade. But this trend does not seem to be only one route dominant. Many large trading nations like India are promoting trade in local currency.
Though these trends will not overthrow the dollar dominance they will create an alternative that can help non-US countries in controlling inflation in future. The acceleration of this trend will begin when CBDC ( Central Bank Digital Currency) gets fully adopted, making wallet-to-wallet transactions not dependent on current international trade and currency mechanisms.
Time for a short history lesson, there have been six world reserve currencies since 1450. The last change was from Great Britain (1815-1920) to the current one which is the United States starting in 1921.