The Petrodollar Myth: Unpacking Its Power and Limitations in Global Oil Markets The petrodollar system has been a cornerstone of global oil transactions since the 1970s.
The United States dollar serves as the primary reserve currency for international trade, with far reaching consequences for oil producing countries, major consumers, and the global economy.
Understanding the Petrodollar's Origins In 1973, during the Arab Israeli War, President Nixon unilaterally ended the convertibility of the US dollar to gold.