Published on June 14, 2024, an announcement was made that Saudi Arabia officially terminated its 50-year petrodollar agreement with the United States. Consequently, the nation has successfully transitioned to a multicurrency system for oil sales.
The shift away from the US-exclusive dollar-centric trading system for oil gives Saudi Arabia the flexibility to sell oil in multiple currencies. This move is not only significant for Saudi Arabia but also has implications for the global oil markets. The changes could potentially alter the power dynamics among countries in the oil trade – further details and effects of this transition remain to be seen.
A video summarizing the latest developments is available, detailing the first BRICS meeting after its expansion and a shift in focus to the use of local currencies.
[Image: Saudi Arabia ends its 50-year petrodollar agreement with the United States – Link to video embedded]
