Saudi Arabia Exits US Petrodollar Deal
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The financial markets are bracing for disruption now that Saudi Arabia decided not to renew its 50-year petrodollar partnership with the United States, MSN reported.
This opens the door for Saudi Arabia to sell oil and other goods — instead of exclusively in the U.S. dollar — in multiple other currencies, including the Chinese renminbi, and in euros, yen, and digital currencies such as bitcoin.
Saudi Arabia’s shift to other currencies is expected to hasten the global movement away from the dollar.
The contract, originally signed on June 8, 1974, expired on June 9, 2024, although the petrodollar system was established in 1972, when the U.S. decoupled its currency from gold.
