The consolidated global financial order of the last fifty years is experiencing a transition towards a new and undefined paradigm, marked by the expiry of the agreement on petrodollar between the United States and Saudi Arabia last Sunday.
The term “petrodollar” identified the role of the United States dollar (USD) as the predominant currency for oil transactions on international markets. This agreement dates back to the early 1970s, when the United States and Saudi Arabia concluded an agreement shortly after the US abandoned the gold standard, an agreement that has had significant consequences for the global economy.
L’petrodollar agreement emerged following the 1973 oil crisis, stipulating that Saudi Arabia would price its oil exports exclusively in US dollars and invest its excess oil revenues in US Treasury bonds. In exchange, the United States provided military support and protection to the kingdom. […]
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