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Saudi Arabia Just Ditched The US Dollar #shorts
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Saudi Arabia is ditching up the US dollar as you ditched up your last lover. For ages, Saudi Arabia has been stuck in a relationship with the US dollar, selling oil exclusively in greenbacks. So, why the sudden change? Well, they are cozying up to China, their new BFF. The biggest market for oil right now is Asian countries, with 60% of all Saudi oil exports in 2021.
Why is the petrodollar so crucial for the US? For example, Cuba buys oil from Saudi Arabia, so they have to pay in dollars. But when they send the money for oil, money does not go directly to Saudi Arabia but to the FED in New York. So, the US can block any money transfer in US dollars. This gives the US the power to sanction any nation over the world's most vital commodity: oil
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Why is the petrodollar so crucial for the US? For example, Cuba buys oil from Saudi Arabia, so they have to pay in dollars. But when they send the money for oil, money does not go directly to Saudi Arabia but to the FED in New York. So, the US can block any money transfer in US dollars. This gives the US the power to sanction any nation over the world's most vital commodity: oil
💬Did you enjoy today's video? Tell me all about it in the comments!
*************
Hello and Welcome to the official YouTube Channel of Financial Affairs! 📈
The answers to your financial curiosities are right here. Covering topics from a wide variety such as finance, economy, business, motivation, and technology.
➡️ Discussing the history, information, tactics, and real-world stories that these topics have to offer to those wishing to increase their knowledge.
Answering questions from how the rich stay rich, how banks operate, other countries’ affairs, digital currency, and various relevant topics that need further explaining in today’s world. Our goal on this YouTube channel is to inform, teach, and motivate our viewers on real-world topics.
➡️ Subscribe to my channel to stay connected and informed with information and motivation on all things business, finances, and technology around the world.
Hit the bell to stay notified whenever there is a new video released 🔔
*************
✅ Follow Financial Affairs on social media:
✨ And if you like this video, consider subscribing to Financial Affairs using this Link! ⤵️
*************
#FinancialAffairs #dedollarization #petrodollar
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