Sputnik
The recent lapse of the US-Saudi petrodollar agreement signals the United States' international role in trade is declining but no major shift is expected in the global power dynamic any time soon, Hossein Askari, former IMF Executive Board member and special adviser to the Saudi Arabian finance minister, told Sputnik.
"No, not for now unless it leads to a big shift in the currency denomination of international trade," Askari said when asked if the lapse will lead to a shift in global power dynamics. "It is more a messaging that America’s international role in trade is beginning to decline."
Saudi Arabia decided to let a 50-year petrodollar agreement with the United States expire on June 9. The agreement was created after the 1973 oil crisis and required that Saudi Arabia would price its oil exports exclusively in US dollars and invest its surplus oil revenues in US Treasury bonds.
Saudi Arabia can now sell oil and other goods using other currencies like the renminbi, euro and yen, among others.
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