Imagine that you want to send money from Russia to Peru? How does that work?
Well, there is a broker who has an account in Russia and an account in Peru.
In Russia, between two Russian accounts: payer pays broker.
In Peru, between two Peruvian accounts: broker pays payee.
Every international payment consists in fact out of two local payments intermediated by a broker who has accounts in both countries.
Why does this matter?
Well, how can international financial sanctions exist, if international payments do not even exist?
The reason is simple. Someone who has accounts in both Russia and Peru is not allowed to provide the aforementioned brokerage service in Russia. In other words, international sanctions on Russia only function because of Russian regulations. This means that the Russians are effectively sanctioning themselves.
In the same vein, the reason why BRICS countries claim that the "de-dollarization" that they so badly desire is so "hard" to achieve, is because of their own local regulations. Without these local regulations, there would not even be any so-called "dollarization". The problem would not even exist.
This phenomenon is actually widespread.
Governments regularly create regulations for activities that they simply do not understand. There actually is no real problem, besides the fact that they themselves are the problem. The artificial problems that they then struggle with, are pretty much always self-inflicted.
It is all about less intelligent people trying to impose their stupidity onto more intelligent ones.
It never works.
However, it does hurt the masses of people who are even less intelligent. That is, of course, the social problem caused by having idiots in charge. It hurts the populace below them. But then again, it is the populace itself that votes people like Donald Trump into office. In that sense, it is not completely unfair that they are the ones who suffer the consequences.
In the end, I do not really mind stupid local relations.
If you do understand how things work, then you can even make quite a bit of money from exploiting their rampant stupidity. If the local regulators actually understood what they are doing, it would probably not be that easy, but in practice it really is.