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Saudi Arabia decides not to renew 50-year petrodollar deal with US

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Saudi Arabia decides not to renew 50-year petrodollar deal with US

2024-06-15 02:13 Last Updated At:22:27

The 50-year-old petrodollar agreement between the United States and Saudi Arabia expired on Sunday as the Gulf nation opted not to renew the deal, Nasdaq reported on Tuesday.

The petrodollar agreement, formalized in the 1970s, stipulated that Saudi Arabia would price its oil exports exclusively in U.S. dollars and invest its surplus oil revenues in U.S. treasury bonds. In exchange, the U.S. provided military support and protection to the kingdom.

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Saudi Arabia decides not to renew 50-year petrodollar deal with US

The 50-year-old petrodollar agreement between the United States and Saudi Arabia expired on Sunday as the Gulf nation opted not to renew the deal, Nasdaq reported on Tuesday.

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

As Saudi Arabia has allowed the deal to expire, it now has the flexibility to sell oil in various currencies, including the Chinese yuan, the euro, and the Japanese yen. The range of accepted currencies is expected to expand further in the future.

According to the Nasdaq report, Saudi Arabia's decision not to renew the deal may pose the "most significant challenge" to the petrodollar's dominance, weakening the U.S. dollar and, by extension, the U.S. financial markets.

The report added that if oil were priced in other currencies, it could lead to a decline in global demand for the U.S. dollar.

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

Saudi Arabia decides not to renew 50-year petrodollar deal with US

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20th CPC Central Committee starts third plenary session

2024-07-15 12:23 Last Updated At:13:07

The 20th Central Committee of the Communist Party of China (CPC) started its third plenary session in Beijing on Monday morning.

Xi Jinping, general secretary of the CPC Central Committee, delivered a work report on behalf of the Political Bureau of the CPC Central Committee and expounded on a draft decision of the CPC Central Committee on further comprehensively deepening reform and advancing Chinese modernization.

20th CPC Central Committee starts third plenary session

20th CPC Central Committee starts third plenary session

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