What does this mean? And what happens next? The US dollars position as the base currency for global energy trading gives the US a number of unfair advantages. It seems that Moscow is ready to take those advantages away. The existence of “petrodollars” is one of the pillars of Americas economic might because it creates a significant external demand for American currency, allowing the US to accumulate enormous debts without defaulting. If a Japanese buyer want to buy a barrel of Saudi oil, he has to pay in dollars even if no American oil company ever touches the said barrel. Dollar has held a dominant position in global trading for such a long time that even Gazproms natural gas contracts for Europe are priced and paid for in US dollars. Until recently, a significant part of EU-China trade had been priced in dollars. via The Voice of Russia
Posted on: Mon, 14 Apr 2014 18:30:01 +0000
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