Saudi Arabia's petro-dollar exit: A global finance paradigm shift - The petro-dollar is now officially dead

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Saudi Arabia's petro-dollar exit: A global finance paradigm shift​

The crucial decision to not renew the contract enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars. Additionally, the potential use of digital currencies like Bitcoin may also be considered​

Significant financial upheaval is potentially ahead of the financial world as Saudi Arabia has decided not to renew its 80-year petro-dollar deal with the United States. The deal, which expired on Sunday 9 June, was a cornerstone of the United States global economic dominance.
Originally signed on 8 June 1974, the deal established two joint commissions, one based on economic cooperation and the other on Saudi Arabia's military needs. At the time, it was said that it heralded an era of close cooperation between the two countries, says Katja Hamilton of BizCommunity.
American officials at the time expressed optimism that the deal would motivate Saudi Arabia to ramp up its oil production. They also envisioned it as a blueprint for fostering economic collaboration between Washington and other Arab countries.

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The crucial decision to not renew the contract enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars. Additionally, the potential use of digital currencies like Bitcoin may also be considered.
This latest development signifies a major shift away from the petrodollar system established in 1972, when the US decoupled its currency from gold, and is anticipated to hasten the global shift away from the US dollar.


Cross-border CBDC transactions
In a more recent move, Saudi Arabia has announced its involvement in Project mBridge, a project which explores a multi-central bank digital currency (CBDC) platform shared among participating central banks and commercial banks. It is built on distributed ledger technology (DLT) to enable instant cross-border payments settlements, and foreign-exchange transactions.

The project has more than 26 observing members including the South African Reserve Bank, which was greenlighted as a member this month.

The better known observing members of mBridge are those of the Bank of Israel, Bank of Namibia, Bank of France, Central Bank of Bahrain, Central Bank of Egypt, Central Bank of Jordan, European Central Bank, the International Monetary Fund, the Federal Reserve Bank of New York, the Reserve Bank of Australia, and the World Bank.
In tandem, the project steering committee has created a bespoke governance and legal framework, including a rulebook, tailored to match the platform's unique decentralised nature.

Evolution of Project mBridge
Project mBridge is the result of extensive collaboration starting in 2021 between the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People's Bank of China and the Hong Kong Monetary Authority.
In 2022, a pilot with real-value transactions was conducted. Since then, the mBridge project team has been exploring whether the prototype platform could evolve to become a Minimum Viable Product (MVP) – a stage now reached.
As it enters the MVP stage, Project mBridge is now inviting private-sector firms to propose new solutions and use cases that could help develop the platform and showcase all its potential.

 

[skunt]

Additionally, the potential use of digital currencies like Bitcoin may also be considered

lol and indeed lmao

We are not as entrenched with foreign oil as we were in the 1970-80s. US domestic production has increased substantially since the oil crisis, and we have diversified our energy sector.

i'm pretty sure that has nothing at all to do with it. having SA trade only in dollars forces other countries to trade in US currency which entrenches trust in the almighty dollah. if countries no longer need to use dollars, they won't - and that money has to go somewhere. obviously too, it'll mean a (probably significant) reduction in demand for the dollar

 

[CAPTAIN HAPPY]

Yeah, and the banks making the transfer will gladly throw out the most trusted currency in the world and base everything on Somalian Shilligs or some shit.

 

[Cuckoman]

lol and indeed lmao

Yeah, that was fucking retarded. "Journalists" can watch a thing happen
and then they will always inevitably process it and draw the most retarded
conclusion possible.

If ChatGTP replaced all "journalists" it would legit ingrease the quality of both language and forming
sentences as well as being factually correct.

Look journoniggers, ChatGTP makes a better job than you already. Why should you not live
on food stamps?

 

[IKOL]

Petrodollar dies.
Petroshekel rise up.
Petrooruble is nothing but a wishful dream to this day.

oy vey.

 

[Cuckoman]

Yeah, and the banks making the transfer will gladly throw out the most trusted currency in the world and base everything on Somalian Shilligs or some shit.

The mode of operation should be "do not force them into a different banking system". But that is what is not happening.
Of course this change happens not over night but over decades but the effect also lasts for decades.

You force every country that is sceptical against for example the benefits of public gay anal sex to a different banking system and economy.
How do you get them back?
The plan is "we no longer require gay anal sex in kindergarten teaching plans" and then they will come back?
Maybe fucking understand and respect that other countries and cultures have different valuesystems and work towards
a common ground instead of "You aint a Biden supporter unless I sniff your child"

 

[VF-1J Armored Valkyrie]

Total nigger uprising, tranny tyranny, and 100% direct Jewish control have been a week away on this website for the last 5 years, at least. None of it has ever actually happened, we just circle the drain of the status quo indefinitely without a hint of self-awareness.

Bean counters and talking heads may have a bit of a headache for a while in trying to figure out the next fake money printing machine. Nobody posting here has enough going for them to notice anything different.

 

[Sargon's wife's son]

Looks like Saudi Arabia is gonna need some democracy

 

[CAPTAIN HAPPY]

The mode of operation should be "do not force them into a different banking system". But that is what is not happening.
Of course this change happens not over night but over decades but the effect also lasts for decades.

This change happens never, unless the US gets Yellowstoned or some shit lol

You force every country that is sceptical against for example the benefits of public gay anal sex to a different banking system and economy.

My retarded nigger friend. Nobody gives a fuck about the gay agenda, besides the gays and their liberal peons.
And the rightoid halfwits who are gay themselves and have nothing to do with their miserable lives, besides complain how the goberment is stealing their taxes which they don't pay or how schools are molesting their idiots kids that said rightoid beat the shit out of while they're at home.

How do you get them back?
The plan is "we no longer require gay anal sex in kindergarten teaching plans" and then they will come back?
Maybe fucking understand and respect that other countries and cultures have different valuesystems and work towards
a common ground instead of "You aint a Biden supporter unless I sniff your child"

Here's the short version of it, my retarded nigger friend. In global economics, nobody gives a shit about your gay agenda politics. It's not eve a fucking talking point. The only thing the economy cares about is stability and investment possibilities. The US being the most trusted and advanced nation in human history has a pretty big edge, the biggest edge even.
All the while any saudi, iranian, ching chong, jackie chan, mongolian backwards shitholes with their shithole economics and sticks and stones technology, and their gipsy attitude is why the US dollar will always remain on top. You replace it with anything you want and the system will collapse because nobody will trust any saudi, iranian, ching chong, jackie chan, mongolian currency, because they are all gypsy thieving scumbags.
Also to add to your gay agenda. Maybe you should stop being a retarded nigger and look into how much money the saudis, the chinks and the ruskies are puring into leftist academia. Then maybe you can be even more retarded when you say it's the west pushing the gay agenda on everyone, while the based saudi, iranian, ching chong, jackie chan, mongolian crooks are really scared of the gays, the saudi, iranian, ching chong, jackie chan, mongolian niggers are actually good guys, they love conservative values, even though their entire society is filled by subhuman child rapists, canibals, slavers and other shit that the average retarded nigger westerner like you has only seen in your faggoty video games and cartoon animes.

 

[Snekposter]

This is not really about who US buys oil from or how much oil the US could produce domestically.

It is about other countries doing business with Saudi-Arabia.
Until now anyone that wanted to buy oil from Saudi-Arabia would FIRST have to buy US Dollars so that they could use them to pay the saudies. That used to be the case even for all other oil exporters too. You want to buy oil you first buy USD.

The result was that all other countries would have to keep a huge stockpile of USD so that they could pay for their oil imports.
Moving away from the petro dollar all these countries no longer need that much of a USD stockpile since they can start paying in their own currency.

In short, over time all these enormous foreign stockpiles of US dollars are coming home. And just like printing money this means inflation.
Inflation that will last a long time as this is a slow process.

Slow enough that you can not notice it when it happens but you will notice it when you look back. You probably didn't notice one particular day in the last 5 years when a BigMac really jumped in price but it happened, slowly. Today you pay 18$ for a BM Meal while 5 years ago you paid less than 10.
The end of the petro dollar will mean an extended period of higher than usual inflation while the excess supply of USD coming home works itself into the economy.

I think you're overstating the effects. Even without the Saudis selling oil only in dollars the USD is still the de facto international trade currency, as well as other nations' reserve currency. The world has traded the gold standard for the dollar standard, and de-dollarization is going to require a replacement.

 

[ComStar]

Yeah, and the banks making the transfer will gladly throw out the most trusted currency in the world and base everything on Somalian Shilligs or some shit.

You mean i shouldn't go long on cowrie shells and cocoa beans?

 

[CAPTAIN HAPPY]

You mean i shouldn't go long on cowrie shells and cocoa beans?

I'd go for pokemon cards,

 

[indigoisviolet]

Isn't it London - New York - Dubai now? Which means the same finger is on the economic scales anyway? Whatever currency Saud now accepts for black gold will flow into the same system as it ever did with the petro-dollar. A system that is pushing to go physical currency-free, which would negate the sudden flush of dollars running home over the next five decades.

 

[mister fireworks]

I dont understand. Isnt the entire reason that the US never bitches about the slavery, soccer field beheadings, women are dogs (YAH!) and allows the inbred subhuman retard saudi royal family to run around the planet being gross arab beasts in civilized countries with zero reproach because of the petrodollar agreement?

Saudi Arabia has been trying to get ANY type of non oil investment into their country for over a decade and have been unsuccessful specifically because they are essentially the unruly shitbull pet of the US. Even if they had been able to diversify their economy, they still belong to the US. They have been co-conspirators with the United States since Reagan at least and even the dumbest sand niggers to ever live cant be retarded enough to think that they can collab on 9/11 with the US and then simply decline to participate in the deal that has funded their entire existence.

This is theater/a cash grab and everything, including the timing of the announcement was done in order to fuck with the markets to allow private interests privy to the actual plan for when the renewed deal will be announced to make some insider trading money.

 

[Bunkerhousing]

I dont understand. Isnt the entire reason that the US never bitches about the slavery, soccer field beheadings, women are dogs (YAH!) and allows the inbred subhuman retard saudi royal family to run around the planet being gross arab beasts in civilized countries with zero reproach because of the petrodollar agreement?

Saudi Arabia has been trying to get ANY type of non oil investment into their country for over a decade and have been unsuccessful specifically because they are essentially the unruly shitbull pet of the US. Even if they had been able to diversify their economy, they still belong to the US. They have been co-conspirators with the United States since Reagan at least and even the dumbest sand niggers to ever live cant be retarded enough to think that they can collab on 9/11 with the US and then simply decline to participate in the deal that has funded their entire existence.

This is theater/a cash grab and everything, including the timing of the announcement was done in order to fuck with the markets to allow private interests privy to the actual plan for when the renewed deal will be announced to make some insider trading money.

Yes, the whole thing is weird, either they are extremely incompetent or there is something else.

 

[Troonos]

Yes... excellent. Accelerate.

Maybe if things get bad enough, Americans will finally have enough real problems that they can stop pretending their pronouns matter and they'll actually fight for something important again.

 

[Breadbassket]

Yes, the whole thing is weird, either they are extremely incompetent or there is something else.

Knowing Saudi Arabia it wouldn't be surprising if this is all some power leveraging non-sense. Either that or the Royal Family does think the petrodollar deal truly is a waste. The country has been getting somewhat closer to China in recent years.

 

[SSj_Ness (Yiffed)]

I'm not educated enough to know how this will effect anything, but I imagine this isn't in our favor, like everything else under this administration.

 

[Faceless Whore]

When trump was president, he went there and even took part in that fag ouya session with the glowing testicle

Ah, better times...

 

[Bunkerhousing]

Knowing Saudi Arabia it wouldn't be surprising if this is all some power leveraging non-sense. Either that or the Royal Family does think the petrodollar deal truly is a waste. The country has been getting somewhat closer to China in recent years.

But is this not risky for the Saudis? US Invaded Iraq and toppled Libya to prevent this, and now they just give it up. Huh.

 

[EsotericAnthropologist]

So if it was an 80-year deal and was signed n the 1970s, how is it expiring already? Shouldn't we have another 30 years of it?