Petrodollar Died This Month, Not the US Dollar
The 50-year PETRODOLLAR agreement with Saudi Arabia to use the US dollar for oil payments ended in June 2024. Saudi Arabia can now accept other currencies for oil settlements including the Chinese yuan, Japanese yen, and Indian rupee. China’s President Xi Jinping is keen on pushing the Chinese yuan ahead not only for oil but for all transactions. Also Read: BRICS Outperforms the US: Becomes Top Exporter of Copper There’s a plethora of currencies for Saudi Arabia to choose from that could replace the PETRODOLLAR and usher into a new era of oil trade. However, Saudi Arabia cannot afford to replace the US dollar with local currencies after the PETRODOLLAR ’s demise. Why, you may ask? Well, it’s because Saudi Arabia ’s local currency, the riyal (SAR) is pegged to the US dollar . Also Read: 93% Oppose U.S. Plans of Creating ‘Asian NATO’ US Dollar Still Thrives While the Petrodollar Dies Source: Anton Petrus/Moment RF/Getty Images The riyal is pegged to t...
