Summary: The petrodollar agreement between the US and Saudi Arabia is unlikely to end soon.

From Investing.com: 2024-07-06 02:29:00

In recent news, concerns have been raised about the possible end of the petrodollar agreement, with headlines from various sources. However, it is important to understand what the petrodollar is and its history before jumping to conclusions. The petrodollar agreement between the US and Saudi Arabia was born out of mutual needs and interests, not focused solely on the dollar. The current situation is different from the past, as Saudi Arabia no longer has surplus funds to invest in US Treasury securities. Despite rumors of its demise, the strength of the dollar remains due to various factors that other potential reserve currencies lack. The petrodollar is unlikely to disappear anytime soon, as there is no viable alternative currently in place.



Read more at Investing.com: Here’s Why the Petrodollar Isn’t Going Anywhere