Video: The end of petrodollars? Now, let's wait and see!

Video: The end of petrodollars? Now, let's wait and see!

In the video above, the presenter discusses the future of petrodollars. What are they, what will happen with the Ukraine war and the Russian push to remove the dollar as the sole payment mode when oil is bought and sold!

Petrodollars are merely US dollars that have been exchanged for crude oil exports; they are not a currency. The word gained economic and political use in the mid-1970s, as the United States and crude oil exporters became more interdependent.

Reliance on petrodollars

The reliance of foreign oil exporters on the US dollar (in this case known as petrodollars) as the primary means of exchange and store of value mirrored the dollar’s previously established status as the global reserve currency, which remains unchallenged to this day.

The dollar’s worldwide stature and widespread use are a result of the United States’ leading global position and openness to international commerce and investment.

These benefits were tempting to oil exporters, and their reliance on the dollar prolonged the dollar’s supremacy.