The End of the Petrodollar? No, the Petrodollar is Here to Stay
The end of the Petro Dollar, courtesy of Antonio Graceffo
The internet is suddenly overwhelmed with stories about the end of the petrodollar, claiming that the US contract with Saudi Arabia to sell oil in USD expired on June 9th after fifty years.
However, no such petrodollar contract exists. Consequently, it cannot have an expiration date. The agreement was not to sell oil in dollars but to price oil in dollars and for the Saudi central bank to hold US government debt as reserves.
In return, the US provided security to Saudi Arabia and allowed it to purchase US debt at the issue price before it hit the market. This agreement has no expiration date. Articles claiming otherwise are disinformation.
