Saudi Arabia ditches US dollar and will NOT renew the 50 year 'petro-dollar' agreement with the United States.

[scruffy]

After the U.S. reneged on paying off gold to France from the Bretton Woods agreement from WW 2, the world financial system started to buckle. A basket of currencies was set up with our nation not paying attention to oil producing nations. They saw an opening with a developing Watergate, and we still treated them stupidly. Eventually we made a deal where our currency aligned with the greatest sweet crude oil on earth at the time. And Saudi Arabia was ground zero. So, our currency and Saudi oil which is a commodity ruled for a half century. We lost control of our Fiat Currency at that time as we cry about massive debts that grow and grow now. There are different grades of oil. We may export our lower grades to other parts of the world to get the sweetest ones imported for us.

Basically true.

 

[surada]

We're 7 billion, and growing surada

~S~

Population of earth? We diversity power sources. KSA is very successful with solar applications.

 

[surada]

Basically true.

Libyan crude is sweet. All grades of Saudi oil have sulphur.... They're sour.
.

 

[Nobody911]

Just another Biden junta moment.

The worst President ever. The one and only POTATUS.

The Status of the Petrodollar Agreement

It is true that Saudi Arabia has decided not to renew its 80-year petrodollar deal with the United States, which expired on Sunday, June 9, 2024. This agreement, originally signed on June 8, 1974, had been a key part of US global economic influence. By choosing not to extend this contract, Saudi Arabia can now sell oil and other goods using different currencies, such as the Chinese RMB, Euros, Yen, and Yuan, instead of only US dollars. There's also talk of exploring digital currencies like Bitcoin for transactions. This decision marks a significant move away from the petrodollar system established in 1972 when the US stopped linking its currency directly to gold.

●●Implications of the Decision●●

Impact on the U.S. Dollar:
The petrodollar system, which was established in the 1970s, has been a significant factor in maintaining the U.S. dollar as the world's reserve currency. With the agreement not being renewed, there could be a decrease in global demand for the U.S. dollar, potentially weakening its value.

Global Financial Landscape:
The decision by Saudi Arabia not to renew the petrodollar agreement signifies a major change in the global financial landscape. It is expected to accelerate the global trend of using currencies other than the US dollar.

US-Saudi Relations:
This decision puts strain on the trade relationship between Saudi Arabia and the United States. Historically, the petrodollar system ensured stability and economic benefits for both nations, but Saudi Arabia's move signals a shift away from US dollar dependency.

Conclusion

In conclusion, it is true that Saudi Arabia has decided not to renew the 80-year petrodollar deal with the United States, marking a significant shift in global financial dynamics and potentially impacting the global demand for the U.S. dollar.

==> In terms of foreign currency, Uncle Sam may not have a significant impact as a merchant anymore. His currency may resemble that of the old Biden stumbling towards his coffin! lol.

Sources :

1. Saudi Arabia ends 80-year petrodollar deal with US for multi-currency sales

2. Saudi Arabia ditches US dollar and will NOT renew the 50 year 'petro-dollar' agreement with the United States.

3. Saudi Arabia Ditches US Dollar, will not be Renewing the 50-year Petrodollar Agreement with the United States.