Petrodollar

The petrodollar refers to the global system in which international oil sales are predominantly denominated and settled in U.S. dollars. This arrangement, established in the 1970s, reinforced the dollar’s status as the world’s primary reserve currency. The petrodollar system creates structural demand for dollars and U.S. debt, shaping international monetary and trade dynamics.

Related Intelligence

This term is explored in depth in SBI-004.