Saudi Arabia ends petrodollar agreement: What it means for the USD, Bitcoin, and gold

[Menthol]

I think the decision is based on idealism, rather than maximizing profit.

I don't know what is going on in the background, why so many countries are leaving USD, while USD value is at the highest compared with other currency values.

Is USD going collapse in the near future?

And every big countries are preparing for it?

I don't know.

 

[Menthol]

I think the decision is based on idealism, rather than maximizing profit.

I don't know what is going on in the background, why so many countries are leaving USD, while USD value is at the highest compared with other currency values.

Is USD going collapse in the near future?

And every big countries are preparing for it?

I don't know.

Or they actually trade with gold?

Gold value is higher than USD right now.

 

[muhammed45]

KSA is the most valuable asset in the hands of enemies of Islam and Muslims.

The land that once produced someone in calibre of prophet Muhammed pbuh or Omar Ibn Khattab RA is now one of the main pillars of western hegemon.

Unbelievable.

 

[VCheng]

I would love to wait and see.

As would I, but in the meantime I would also ignore such Stupid and Funny stories such as the title post of this thread.

 

[Hamartia Antidote]

As would I, but in the meantime I would also ignore such Stupid and Funny stories such as the title post of this thread.

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www.marketwatch.com

Reports of the petrodollar system’s demise are ‘fake news’ — here’s why​

Stories about the collapse of a longstanding ‘petrodollar’ agreement between the U.S. and Saudi Arabia spread like wildfire on social media. But the agreement never existed.

It


It seemed like big news, and many wondered why the mainstream media had seemingly ignored it. Turns out, there was a very good reason.
Earlier this week, reports circulating widely on social-media platforms like X offered up a shocking proclamation: A 50-year-old agreement between the U.S. and Saudi Arabia requiring that the latter price its crude-oil exports in U.S. dollars had expired on Sunday.
The collapse of the accord would inevitably deal a fatal blow to the U.S. dollar’s status as the de facto global reserve currency, various commentators on X opined. Surely, financial upheaval lay ahead.

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Almost immediately, Google searches for the term “petrodollar” spiked to the highest level on record dating back to 2004, according to Google Trends data.
Source: Google Trends

But as speculation about an imminent end to the U.S. dollar’s global dominance intensified, several Wall Street and foreign-policy experts emerged to point out a fatal flaw in this logic: The agreement itself never existed.

At least, not in the way it was being described in the posts that had gone viral on social media

 

[Dalit]

KSA is the most valuable asset in the hands of enemies of Islam and Muslims.

The land that once produced someone in calibre of prophet Muhammed pbuh or Omar Ibn Khattab RA is now one of the main pillars of western hegemon.

Unbelievable.

The Saudis are lackeys of the US. I don't believe a word of this story. The day the Saudi monarchy turns its back to the US will be the day when the people will ransack the kingdom.

 

[RoadRunner]

The agreement between the U.S. and Saudi Arabia expired on June 9, 2024. This expiration has far-reaching implications, as it has the potential to disrupt the global financial order.

The expiration of the petrodollar agreement represents a significant shift in global power dynamics. It highlights the growing influence of emerging economies and the changing energy landscape. While the full implications of this shift remain to be seen, investors should at least be aware that on a macro level, the global financial order is entering a new era. The U.S. dollar’s dominance is no longer guaranteed.

Late last summer, the UAE settled an oil trade without converting local currencies to dollars for the first time when India's top refiner paid for crude in rupees. India has also bought oil from Russia without using dollars. India ranks as the world's third-largest oil importer.

"This move by Saudi Arabia marks the beginning of a major shift in global economic dynamics, though its full implications on international trade and finance remain to be seen."

 

[AZADPAKISTAN2009]

Interesting development , did not see this coming
Specially Since Saudia-Israel-India were aiming to build a economic relation

Saudia moving away from Dollar Endorsement is something unexpected

Saudia is generally quite quite even considering the chaos happening around it

 

[Vi-va]

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www.marketwatch.com

Reports of the petrodollar system’s demise are ‘fake news’ — here’s why​

Everything is as good as it was. Nothing happened.
There is no power shift.
$300 billion in Russian assets in the West was NOT frozen. Don't worry.
G7 Agrees to $50 Billion Ukraine Loan Backed by Russian Assets Brilliant!
Ukraine War is a skirmish.

So KSA is so stupid that they don't worry when they have trillions of U.S. foreign exchange assets?
Or do you believe that no matter how smart KSA is, they don't have any choice but to stick to the U.S. bond?

There is something brewing, we will witness before the U.S. general election, I assure you.

MBS won't give Biden a green pass in November. He will take revenge. We all knew he favored Trump over Biden.

 

[xiao]

It has started one of the usual styles of the United States not to admit that if what you say is true, is the anchor of the dollar after 1975 paper?

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www.marketwatch.com

Reports of the petrodollar system’s demise are ‘fake news’ — here’s why​

 

[Hamartia Antidote]

If nothing happens to the dollar…there is going to be egg on people’s faces here for the 100th time about a supposed dollar collapse trigger event that never happened

 

[Vi-va]

If nothing happens to the dollar…there is going to be egg on people’s faces here for the 100th time about a dollar collapse

LOL
No one said the dollar would collapse next morning, just like Rome wasn't built in a day.

You don't expect any consequence from freezing 300 billion Russian foreign assets and using that money against Russia in the Ukraine War, do you?

Nothing is free. Some countries may be dumb, but the KSA is not.

 

[Hamartia Antidote]

You don't expect any consequence from freezing 300 billion Russian foreign assets

Well considering the crappy way Russia and Ukraine are fighting each other even handing them each $1Trillion probably wouldn’t make a difference.

 

[Vi-va]

Well considering the crappy way Russia and Ukraine are fighting even handing them $1Trillion probably wouldn’t make a difference.

1 trillion should make a difference for Ukraine.

No one is helping Russia militarily. India has been milking Russia's cheap oil for two damn years, since 2022.

While Ukraine was used as cannon fodder, India is learning. It seems India backed off from the hyped QUAD. A good lesson for the minor powers.

 

[Hamartia Antidote]

1 trillion should make a difference for Ukraine.

No one is helping Russia militarily. India has been milking Russia's cheap oil for two damn years, since 2022.

While Ukraine was used as cannon fodder, India is learning. It seems India backed off from the hyped QUAD. A good lesson for the minor powers.

Ukraine, Russia, India, China…all brothers in incompetence.