Petrodollar: UBS Clarifies What Happens To the US Dollar
Petrodollar is the most used word in the financial sphere as the 50-year agreement with Saudi Arabia has ended. This gives the Kingdom of Saudi Arabia the license to accept local currencies from other countries for oil settlements. However, there is a critical flaw in this process as Saudi Arabia announced it is ready to accept local currencies two years ago. This is nothing new and several countries have already paid local currencies for oil with Saudi Arabia, not the US dollar, despite the petrodollar agreement being in place. Also Read: Petrodollar: Saudi Arabia Ditching the Dollar Will Affect 3 US Sectors So will Saudi Arabia stop accepting the US dollar for Oil because the petro dollar agreement came to an end? The answer is no. The US dollar ’s dominance in Oil trade reigns supreme and Saudi Arabia will continue accepting it for the majority of the transactions, even though the petro dollar is out of the equation. Read here to know more details about the petro...