#StockMarket #Petrodollar #SaudiArabia⠀
⚠️ The petrodollar is canceled: political scandal or new logic?⠀
Saudi Arabia has decided not to renew its 80-year multi-currency agreement with the U.S., which expired on June 9. This destroys the
petrodollar payment system, a critical element of U.S. global economic influence.
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The agreement called for joint commissions on Saudi Arabia's economic cooperation and military needs. At the time, U.S. officials hoped it would encourage Saudi Arabia to produce more oil and strengthen economic ties with Arab countries.
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Having decided not to renew that contract, Saudi Arabia can now sell oil and other goods using a variety of currencies such as the Chinese yuan, euro, yen, and renminbi, not just U.S. dollars. The possibility of using digital currencies such as Bitcoin for transactions is also discussed.
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This is expected to accelerate the global trend of using currencies other than the U.S. dollar in international trade. Saudi Arabia has also joined the mBridge project, a collaborative effort to develop a digital currency platform shared by central and commercial banks. This project aims to facilitate instant cross-border payments and foreign exchange transactions using distributed ledger technology.
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Global economic dynamics are changing, and Saudi Arabia's move is proof of that. However, its full implications for international trade and finance remain to be seen.
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This is certainly not the end of the dollar era. However, the world is rapidly moving towards a new monetary system that is freer and more difficult to manage.
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What do you think?
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Profits to y’all!