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Wait, explain me to this: Why isn't Saudi Arabia pricing oil in Saudi Riyal? This is their gateway to dominate large portions of global economy. Who ever holds
by sytelus 7y ago
Wait, explain me to this: Why isn't Saudi Arabia pricing oil in Saudi Riyal? This is their gateway to dominate large portions of global economy. Who ever holds this golden key can print whatever sums they need at whims and offload it to rest of the world (just like US doing massive QEs at whims and never have to experience bad side of it). KSA infact is not just pricing oil in dollars but also mandating riyal to exactly follow the dollar! Most other countries do sell their produces in their own currencies such as China.
- akiselev 7y agoA large fall in oil prices (like the one we just saw) would wipe out the currency before Saudi Arabia would even be able to print anything to respond to the crisis. The USD is stable because of the full faith and credit of the United States government, not because oil is traded in USD.