US-Saudi Arabia Petro Dollar Pact Ends – Joe Biden’s Failures Are Bringing an End to Global Dollar Dominance


Leaders from the BRICS Alliance meet in 2018 including Vladimir Putin and Xi Jinping. The original BRICs nations included – Brazil, Russia, India, and China and South Africa.

In March 2023, South Africa’s Foreign Minister Naledi Pandor announced that Saudia Arabia, United Arab Emirates, Egypt, Algeria, Argentina, Mexico, Nigeria, and other nations wanted to join BRICS Alliance. This was a direct threat to the West and US dollar dominance.

Via Kanekoa.

Was this always the plan for the Obama-Biden regime? To take down US dominance on the global stage? Because that is taking place on a rapid scale.

Under Biden, who is openly mocked on the international stage, traditional U.S. allies are now aligning with China.

Saudi Arabia announced in March 2022 it was considering accepting the Chinese yuan instead of the US dollar in future transactions.

Last week Joe Biden allowed the 50-year-old petrodollar agreement between the U.S. and Saudi Arabia to expire.
Tip Ranks reported:

The term “petrodollar” refers to the U.S. dollar’s role as the currency used for crude oil transactions on the world market. This arrangement has its roots in the 1970s when the United States and Saudi Arabia struck a deal shortly after the U.S. went off the gold standard that would go on to have far-reaching consequences for the global economy. In the history of global finance, few agreements have wielded as many benefits as the petrodollar pact did for the U.S. economy.

The petrodollar agreement, formalized after the 1973 oil crisis, stipulated that Saudi Arabia would price its oil exports exclusively in U.S. dollars and invest its surplus oil revenues in U.S. Treasury bonds. In return, the U.S. provided military support and protection to the kingdom. This arrangement was a win-win situation for both; the U.S. gained a stable source of oil and a captive market for its debt, while Saudi Arabia secured its economic and overall security.

Oil being denominated in U.S. dollars alone has significance beyond the categories of oil and finance. By mandating that oil be sold in U.S. dollars (DXY), the agreement elevated the dollar’s status as the world’s reserve currency. This, in turn, has profoundly impacted the U.S. economy. The global demand for dollars to purchase oil has helped to keep the currency strong, making imports relatively cheap for American consumers. Additionally, the influx of foreign capital into U.S. Treasury bonds has supported low interest rates and a robust bond market.

But that is all ending now thanks to Joe Biden and his reckless economic and foreign policy.

The petrodollar’s expiration could weaken the U.S. dollar and, by extension, the U.S. financial markets. If oil were to be priced in a currency other than the dollar, it could lead to a decline in global demand for the greenback. This, in turn, could result in higher inflation, higher interest rates, and a weaker bond market in the United States.

Joe Biden is single-handedly destroying the US dollar’s status in the global economy.

It is hard to describe how destructive Joe Biden has been to American life.
It’s as if he is purposely trying to bring down our economy.

BRICS News reported:

The Biden agenda.

Dear Reader - The enemies of freedom are choking off the Gateway Pundit from the resources we need to bring you the truth. Since many asked for it, we now have a way for you to support The Gateway Pundit directly - and get ad-reduced access. Plus, there are goodies like a special Gateway Pundit coffee mug for supporters at a higher level. You can see all the options by clicking here - thank you for your support!
Photo of author
Jim Hoft is the founder and editor of The Gateway Pundit, one of the top conservative news outlets in America. Jim was awarded the Reed Irvine Accuracy in Media Award in 2013 and is the proud recipient of the Breitbart Award for Excellence in Online Journalism from the Americans for Prosperity Foundation in May 2016. In 2023, The Gateway Pundit received the Most Trusted Print Media Award at the American Liberty Awards.

You can email Jim Hoft here, and read more of Jim Hoft's articles here.

 

Thanks for sharing!