The petrodollar is a popular concept in world economics, roughly translating to dollars paid by nations to oil-producing countries while transacting for major oil deals and exports. It was in the 1970s when the term petrodollar came into existence, as growing US imports of expensive crude oil helped the foreign holders to increase their dollar holdings. However, this concept is now up for a major haul, as many nations have been keen on replacing the term petrodollar and putting their own currency tag to reach the top of the economics ladder and game. Can the US dollar truly lose its way in the petrocurrency world? If yes, then AI predicts two alternative petrodollar replacements that can truly become the next financial catalysts of the petrocurrency domain.
Also Read: Nasdaq Rallies the Highest Since 2001: Here’s 5 Stocks to Buy Next for Profits
Two Petrodollar Alternatives That May Dethrone the US Dollar
1. Chinese Yuan (CNY)
Per ChatGPT, the Chinese Yuan has long been vying for this position in efforts to scale the internationalization of CNY. China has lately been purchasing oil from Saudi Arabia using the yuan, challenging the petrodollar supremacy from the start.
In addition to this, President XI of China had long proposed Yuan oil purchases, a development that has been setting the stage for the currency to adapt to a new world order. The Shanghai Petroleum Exchange has long been enabling foreign players to make purchases in yuan for oil futures, letting the idea of a global petroyuan gain speed in the process.
Also Read: Two Economic Giants Team Up to Shatter US Dollar Dependence with 6 De-Dollarization Projects
2. United Arab Emirates Dirham (AED)
Another currency competitor that is after the petrodollar status is AED. This currency is pegged to the USD but is exploring ways to carve an independent path for itself. In this wake, India and the UAE have become the first nations to transact oil deals in local currencies.
In addition to this, the AI predicted how UAE wants to emerge as the next big hub for Web3, which again gives it an edge to launch digital assets for bypassing trade barriers. Furthermore, the UAE is aligned with all nations, showing resistance to no one, which gives its currency a solid footing.
Also Read: Shiba Inu: How Much $5,000 Would Turn Into if SHIB Reclaims Its All-Time High?