The Petrodollar's Enduring Grip on Global Trade and Finance The petrodollar has been a cornerstone of global trade and finance for over five decades.
Despite the rise of alternative energy sources, cryptocurrencies, and emerging economies, the US dollar remains the dominant reserve currency and a linchpin of international monetary policy.
Understanding the Petrodollar's Dilemma In 1973, the United States struck an agreement with Saudi Arabia to provide military protection in exchange for oil concessions.