HomeWorldSaudi Arabia abandons petrodollar system with the US

Saudi Arabia abandons petrodollar system with the US

The Saudi prince stated that he will not extend the contract, indicating a significant change in the global financial environment

Saudi Arabia decided not to renew the “Petrodollar” agreement, which expired on June 9, ending a relationship of about 50 years with the United States.

The crucial decision not to renew the contract allows Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, euro, yen and yuan, instead of exclusively in US dollars, reports Telesur.

Additionally, the potential use of digital currencies such as Bitcoin can also be considered.

 This agreement, initiated after World War II, allowed the United States to control the world's energy and its impact on the standard of living of Americans is substantial.

The petrodollar system replaced gold as the standard of value and allowed the United States to maintain dominance over international trade.

This latest development marks a major shift away from the petrodollar system established in 1972, when the United States decoupled its currency from gold, and is expected to accelerate the global shift away from the US dollar.

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