You are here
Saudi Arabia ends 50-year petrodollar deal with U.S., boosting other currencies
By Pawan Kumar
The Times of India, Mumbai
Friday, June 14, 2024
Saudi Arabia has decided not to renew its 50-year petrodollar agreement with the United States, which expired on Sunday, June 9. This deal, signed on June 8, 1974, was a significant part of the global economic influence of the United States.
The agreement created joint commissions for economic cooperation and supported Saudi Arabia's military needs.
... Dispatch continues below ...
... ADVERTISEMENT ...
USA Gold: Coins and Bullion Since 1973
USAGold, well known for its internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.
Please call 1-800-869-5115x100 and ask for the trading desk, or visit:
USAGold: Great prices, quick delivery -- all the time.
At the time, American officials hoped the agreement would encourage Saudi Arabia to produce more oil and strengthen economic ties with Arab countries.
By not renewing this contract, Saudi Arabia is now free to sell oil and other goods using various currencies like the Chinese renminbi, euros, yen, and yuan rather than only U.S. dollars.
There is also talk of exploring digital currencies, such as bitcoin, for transactions.
This decision marks a major shift away from the petrodollar system, which has been in place since 1972 when the U.S. stopped linking its currency directly to gold. It is expected to speed up the global trend of using currencies other than the U.S. dollar in international trade.
Additionally, Saudi Arabia has joined Project mBridge, a collaborative effort to develop a digital currency platform shared among central banks and commercial banks.
This project aims to facilitate instant cross-border payments and foreign exchange transactions using distributed ledger technology. Project mBridge began in 2021 and involves several prominent central banks and institutions worldwide.
It has recently reached the stage of a minimum viable product, inviting private-sector firms to propose innovations and use cases to further develop the platform.
* * *
Support GATA by purchasing
Stuart Englert's "Rigged"
"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --
-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.
* * *
Help keep GATA going:
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
