Saudi Arabia Walks Away from the Petrodollar Agreement, a 50-Year Partnership to Only Sell Oil in Dollars?

Last month, Russia Hoaxer Jake Sullivan met with Saudi Arabia to try to work with them on various deal, despite Biden constantly propping up Saudi Arabia's enemy Iran and despite Biden calling the Saudi crown prince a murderer.

This is just some of that use of diplomatic Smart Power that Democrats are always bragging about.

No word about whether the Saudis agreed to renew the petrodollar deal, which helps prop up the value of the dollar by making it the only currency the Saudis will sell their oil for

But Newsmax reports that deal lapsed on June 9th, and reports further that the Saudis have decided against renewing it.

Heckuva job, Jakey!

The financial markets are bracing for disruption now that Saudi Arabia decided not to renew its 50-year petrodollar partnership with the United States, MSN reported.

This opens the door for Saudi Arabia to sell oil and other goods -- instead of exclusively in the U.S. dollar -- in multiple other currencies, including the Chinese renminbi, and in euros, yen, and digital currencies such as bitcoin.

Saudi Arabia's shift to other currencies is expected to hasten the global movement away from the dollar.

The contract, originally signed on June 8, 1974, expired on June 9, 2024, although the petrodollar system was established in 1972, when the U.S. decoupled its currency from gold.

The 1974 security agreement that the U.S. and Saudi Arabia signed heralded close cooperation between the two countries by establishing two joint commissions, one on economic cooperation and the second on Saudi Arabia's military needs.

The United States' goal was to motivate the Kingdom of Saudi Arabia to ramp up its oil production and foster cooperation not only with that country but other Arab nations as well.

More from "Bizcommunity":

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.

America is Back, Baby!

Why don't you believe me?

I don't see the Gaslight Media reporting on this. But that is probably just because they're waiting for instructions from the White House about how to spin this as Akshually It's a Major Achievement.

Hat tip to SomebodyHadTo.

posted by Disinformation Expert Ace at 03:10 PM

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