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The US as well (massively) if this leads to a shift off the petrodollar.
by spurgu 5y ago
The US as well (massively) if this leads to a shift off the petrodollar.
- echelon 5y agoThis is one of the developments I've been watching with interest. Saudi Arabia seems to be interested in trading oil in Yuan now [1], which would mark an enormous shift away from the petrodollar. And from one of the US' biggest oil trading partners, at that. Does anyone with more context in the energy / geopolitical world care to add some color? [1] https://www.wsj.com/articles/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541 https://www.wsj.com/articles/saudi-arabia-considers-acceptin... edit: add link, +" away from the petrodollar"
- ericmay 5y agoIt doesn't matter. They were only proposing this for trade with China, and the USD is useful regardless. Notice how nobody in Europe is worried that the Euro isn't the primary trading currency for oil, and the Euro is worth more than the USD? The only existential threat to the USD is an actual civil war in the United States. I don't even view cryptocurrency as a threat.
- JumpCrisscross 5y ago> if this leads to a shift off the petrodollar Given the petrodollar hypothesis for dollar dominance is a debunked myth, no. (TL; DR Oil is priced and trades in numerous currencies. America is not dependent on foreign oil. The global transaction volumes in oil, across currencies, pales next to total U.S. dollar volumes.) We've in all but explicit name cancelled the deal with the House of Saud that created the petrodollar because petrodollars are no longer useful to us.