Reported about 1 year ago
Saudi Arabia announced it will not renew the Petrodollar Agreement, which linked oil trades to the US dollar, potentially shaking the global financial order and signaling a shift away from the US dollar hegemony. The agreement, in place for 50 years, ensured US oil supply stability and supported its debt market, while in exchange, Riyadh received military support and protection. With the agreement expiring, Saudi Arabia can now price oil exports in currencies other than the US dollar, like the yuan, euro, ruble, yen, and potentially even cryptocurrencies, leading to geopolitical adjustments and a trend towards using national currencies in energy trade. This move may weaken the dollar's position, impacting inflation, interest rates, and bond markets in the US.
Source: YAHOO