In a drastic new sentiment shift, Saudi Arabia has not renewed its decades-long petrodollar agreement with the US, actively jeopardizing its trade relationship with the United States. The financial world is now bracing for its collective impact, as Saudi Arabia officially spearheaded efforts to move away from the US dollar dependency.
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US Dollar: Saudi Arabia Ditches the Petrodollar
In an ever-changing and dynamic for the US dollar in a multipolar world, Saudi Arabia has decided to ditch its decades-long petrodollar agreement. The contract enabled the US to secure oil from the Arab nation by establishing two important requisites. Firstly, the nations will establish cooperation between themselves. And secondly, the US will help the Saudi Arabian regime fulfill its necessary military requirements.
The agreement which at present, stands void due to not being renewed, is being dubbed a crucial effort towards the de-dollarization agenda. The move accelerates speculation concerning the rising multipolar narrative against the US dollar that’s sweeping over the financial space after the 50-year-old agreement with Saudi Arabia ends.
Saudi Arabia To Trade Oil In Multiple Currencies
With the petrodollar lapse, updates concerning Saudi Arabia’s decision to trade oil in multipolar currencies have also been playing around. Also, the Arab nation has actively decided to trade oil with currencies denominated in Renminbi, Euros, Yen, and Yuan.
The sudden shift of Saudi Arabia towards embracing the multipolar concept has boosted hopes of existing alliances. BRICS and ASEAN have long been promoting the idea of moving away from the US dollar.
Can Bitcoin Be Considered A Potential Oil Trade Medium?
The efforts to derail the US dollar’s status as the reserve currency have now intensified, thanks to Saudi Arabia. Nations are now collectively exploring alternatives that may injure the US dollar’s stature as the leading global currency.
With the recent US dollar and petrodollar agreement lapse with Saudi Arabia, speculation concerning Bitcoin being considered for oil trading has also caught pace, bolstering the cryptocurrency realm to new levels.
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