Saudi Arabia Drifts Away from Washington and the Dollar \ stacker news ~econ

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Saudi Arabia Drifts Away from Washington and the Dollar mises.org/mises-wire/saudi-arabia-drifts-away-washington-and-dollar

310 sats \ 5 comments \ @Undisciplined 15 Jun econ

By Ryan McMaken

Saudi Arabia considers de-dollarization as closer relations with Russia, Iran, and China create new incentives to break with old alliances and deals with Washington.

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42 sats \ 1 reply \ @398ja 16 Jun

But also, the article refutes the idea of a petro dollar contract. This reminds me of another rumour that announced the adoption of a gold backed currency by the BRICS and turned out to be completely false.

It now seems clear that these reports of an alleged formal petrodollar “contract” did indeed get several key facts wrong. First of all, the Saudis’ turn toward embracing currencies other than dollars is not new. Moreover, there is no known formal treaty or contract between the US and Saudi Arabia—least of all one with an expiration date.

21 sats \ 0 replies \ @Undisciplined OP 16 Jun

I'm still a little uncertain about what the reality is surrounding all of this. Kim Iversen had a segment talking about what the exact agreement was.

I guess it doesn't have to be a formal contract or treaty. A credible assurance of military protection under petrodollar stipulations is effectively the same thing, but then it's odd that people are talking about the agreement "expiring".

43 sats \ 2 replies \ @grayruby 15 Jun

Oil will be traded in Bitcoin eventually but they will try everything else first.

51 sats \ 1 reply \ @Undisciplined OP 15 Jun

This is a variant of your model B, I think. The rulers of these countries don't want their people to have access, but it's very useful to them as an international settlement system.

42 sats \ 0 replies \ @grayruby 15 Jun

Sounds about right.