Washington (Sputnik) – The recent lapse of the US-Saudi petrodollar agreement signals the United States’ international role in trade is declining, said former IMF Executive Board member Hossein Askari.
Askari stated that the agreement expiration does not indicate a major shift in global power dynamics but marks a decline in America’s trade role.
Saudi Arabia allowed the 50-year petrodollar agreement with the US to expire on June 9, enabling them to sell oil in various currencies.
Askari believes the oil market will remain stable post the agreement end and doesn’t foresee a significant impact on the dollar’s role in the financial system.
He suggested that while the dollar remains stable, using a basket of currencies for oil pricing could enhance stability.
With the rise of alternative energy sources, the importance of oil is decreasing, indicating a shift in the global energy landscape.
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