Well, the truth is that I was not writing about it because the petrodollar is not dead. It is certainly in trouble, but it is not dead. Today, most oil continues to be sold in U.S. dollars, and most global trade continues to be conducted in U.S. dollars.
According to Investopedia, petrodollars are "Simply U.S. dollars accepted as payment by an oil exporter".
Petrodollars are not a distinct currency; they are simply U.S. dollars accepted as payment by an oil exporter.
Earlier this month, there was a flood of reports that the "50 year petrodollar agreement" between the United States and Saudi Arabia had expired and that the petrodollar was now dead. But that wasn't true.
Last week several reports suggested the termination of a US-Saudi petrodollar agreement, and speculated a Saudi Arabian move to sell oil on world markets in various currencies, including the Chinese yuan.
According to UBS Global Wealth Management chief economist Paul Donovan, the false story about the expiration of the petrodollar agreement "Seems to have started in the crypto world".
Of course the truth is that if we want to find the biggest enemy of the U.S. dollar all we need to do is to look at ourselves.
http://theeconomiccollapseblog.com/the-truth-about-what-is-happening-to-the-petrodollar/
No comments:
Post a Comment