Saudi Arabia Ends the Neftedollar Era.
Saudi Arabia has finalised a petrodollar agreement with the US, allowing itself to sell oil for different currencies.
The move symbolises an important shift in the global financial system and could contribute to the de-dollarisation of the world economy.
Saudi Arabia has terminated the petrodollar pact with the United States established in 1974, allowing it to sell oil for a variety of currencies beyond the U.S. dollar. The decision symbolises a significant shift in the global financial system and could lead to increased use of other currencies, including digital currencies, in international oil trade. Initially, the agreement stipulated that Saudi Arabia would receive security guarantees from the US in exchange for exclusive oil supplies in dollars. However, over time, Saudi Arabia's strengthening economic and political status, as well as changes in global oil flows and technological advances, have reduced the country's dependence on a unilateral economic relationship with the US. Saudi Arabia's refusal to peg oil sales to the dollar is expected to accelerate the process of dedollarisation in the global economy, despite oil's relatively small share of total world trade.
