šš± BREAKING: SAUDI ARABIA ENDS 80-YEAR PETRODOLLAR DEAL WITH U.S.š
š¢ In Short:
- Saudi Arabia ends 80-year petrodollar deal with the US
- Deal allowed Saudi oil sales in US dollars only
- Saudi can now use other currencies like RMB, Euros, etc
š” Saudi Arabia has decided not to renew its 80-year petrodollar deal with the United States, which expired on Sunday, June 9, according to media reports. This historic agreement, initially signed on June 8, 1974, played a crucial role in establishing US global economic dominance.
š Background:
The original deal set up joint commissions for economic cooperation and addressed Saudi Arabia's military needs. American officials hoped it would incentivize Saudi Arabia to increase oil production and strengthen economic ties with Arab countries.
š Shift in Policy:
By choosing not to extend this contract, Saudi Arabia is now free to sell oil and other goods using various currencies such as the Chinese RMB, Euros, Yen, and Yuan, instead of only US dollars. There is also speculation about the potential use of digital currencies like Bitcoin for transactions.
š Broader Implications:
This decision signifies a significant departure from the petrodollar system, which was established in 1972 when the US decoupled its currency from gold.
š Project mBridge:
Saudi Arabia has also joined Project #mBridge , a collaborative initiative exploring a digital currency platform shared among central banks and commercial banks. This project aims to facilitate instant cross-border payments and foreign-exchange transactions using distributed ledger technology.
š Conclusion:
Saudi Arabiaās decision to end the petrodollar agreement marks the beginning of a significant shift in global economic dynamics. This move could reshape the landscape of global economic influence.
š What are your thoughts on Saudi Arabia ditching the Dollar?
How awesome would it be if Saudi would accept #bitcoin ?
Your,
@Professor Mende - Bonuz Ecosystem Founder