Saudi Arabia ended the petrodollar agreement with the United States. "Petrodollar" is a term used to describe the role of the United States dollar (USD) as the currency used for crude oil transactions in the world market. The agreement, which came into force in 1974, expired on June 9.
"It traces back to the early 1970s when the United States and Saudi Arabia struck a deal shortly after the U.S. went off the gold standard – and the agreement has had far-reaching consequences for the global economy," explained finance site Kitco.
NewsMax explained that with this decision, Saudi Arabia will be allowed to sell oil and other goods in many other currencies and not exclusively in the U.S. dollar.
"Saudi Arabia’s shift to other currencies is expected to hasten the global movement away from the dollar ... The 1974 security agreement that the U.S. and Saudi Arabia signed heralded close cooperation between the two countries by establishing two joint commissions, one on economic cooperation and the second on Saudi Arabia’s military needs," NewsMax indicated.
