This major shift could reshape the global oil market and challenge the us dollar's dominance. This next report explores the details, what it means for the future of international trade, and the rising trend of de-dollarization. Take a look…
Transcript
0:00
the decades long Petro dollar agreement
0:02
between the US and Saudi Arabia has come
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to an end this major shift could reshape
0:06
the global oil market and challenge the
0:08
US Dollar's dominance this next report
0:11
explores the details what it means for
0:13
the future of international trade and
0:15
the rising trend of dollarization take a
0:19
look in a move shaking the Global
0:22
Financial landscape Saudi Arabia has
0:24
ended its historic agreement with the
0:26
United States to exclusively sell oil in
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US dollarss
0:30
this Petro Dollar Deal established in
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1974 has been a Cornerstone of American
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economic
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power now Saudi Arabia is free to sell
0:40
oil in various currencies potentially
0:43
weakening the Dollar's dominance in
0:45
international
0:46
trade this shift coincides with the
0:49
growing influence of the bricks Group
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which includes major economies like
0:53
China India and now Saudi Arabia itself
0:56
Brick Nations are pushing for greater
0:58
use of local currencies in International
1:00
transactions further challenging the
1:03
Dollar's traditional role the recent
1:05
wave of geopolitical tensions
1:07
particularly the war in Ukraine and
1:09
sanctions on Russia has fueled concerns
1:11
about the security of dollar denominated
1:14
assets central banks responsible for
1:17
managing a nation's foreign reserves are
1:19
increasingly worried about the potential
1:21
weaponization of these reserves meaning
1:23
their seizure or freezing in case of
1:26
conflict this has led to a
1:28
diversification of Central Bank reserves
1:30
with currencies like the Euro and Yen
1:32
gaining traction additionally gold is
1:35
seeing renewed interest as a safe haven
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asset data suggests a potential
1:40
dollarization Trend while the US dollar
1:43
still holds a dominant position in
1:45
global reserves of around 55% its share
1:49
has been steadily declining from 67% in
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2021 central banks are actively
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diversifying their Holdings towards
1:56
their currencies and goals this shift
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driven by both economic and political
2:01
factors could have significant long-term
2:04
consequences for Global Financial
2:06
markets and the US Dollar's position as
2:08
world's Reserve
2:11
currency Business Bureau weon world is
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one
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[Music]
