{"id":2269311,"date":"2024-06-17T07:33:02","date_gmt":"2024-06-17T11:33:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/if-bidens-economy-were-strong-our-trade-partners-wouldnt-be-de-dollarizing\/"},"modified":"2024-06-17T07:38:32","modified_gmt":"2024-06-17T11:38:32","slug":"if-bidens-economy-were-strong-our-trade-partners-wouldnt-be-de-dollarizing","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/if-bidens-economy-were-strong-our-trade-partners-wouldnt-be-de-dollarizing\/","title":{"rendered":"If Biden&#8217;s Economy Were Strong, Trade Partners Wouldn&#8217;t Abandon the Dollar"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fif-bidens-economy-were-strong-our-trade-partners-wouldnt-be-de-dollarizing%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2269311&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The 50-year petrodollar \u2063agreement between the United States\u2064 and Saudi Arabia, which established the U.S. dollar as \u2063the \u2063global currency for oil transactions, ended on June\u200b 9, 2024.\u200b This conclusion of\u200b the agreement has sparked concerns about the future of the U.S. dollar&#8217;s dominance in global commerce, particularly\u200b since the U.S. dollar was \u2062previously seen as the \u201cgold standard\u201d in the global\u2062 oil trade.<\/p>\n<p>Investopedia\u200b explains that oil\u2063 exporters preferred settling sales in U.S. dollars due to its \u2063widespread use, which simplified investment of export proceeds. However, Petrodollar Agreement&#8217;s termination could lead to decreased demand\u200d for\u2064 the \u2064U.S. dollar.<\/p>\n<p>The \u2062Heritage Foundation cited U.S.\u2063 sanctions, especially unprecedented ones against Russia following its invasion\u200b of Ukraine,\u2064 as a driving factor behind the shift away from the U.S. \u200ddollar by countries including Brazil and Saudi Arabia, increasingly aligning with the BRICS coalition led\u200b by China. This shift\u2062 has \u2064led to the U.S. dollar&#8217;s reduced role in global trade, now\u2062 accounting for just 40% down from 52% ten years ago.<\/p>\n<p>BRICS, \u2063a group formed by Brazil, Russia, \u2063India, China, and South Africa, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/state-dept-considers-refugee-status-for-some-hongkongers\/\" title=\"State Dept. considers refugee status for some Hongkongers\">recently joined<\/a> by other nations, has been seen as challenging Western \u200cdominance and is\u2062 pushing for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russias-300-billion-in-foreign-currency-holdings-could-disrupt-money-markets\/\" title=\"Russia\u2019s 0 Billion in Foreign Currency Holdings Could Disrupt Money Markets\">de-dollarization<\/a> in international trade. This sentiment was echoed by Russian President \u200dVladimir Putin who highlighted the increasing use of the ruble in Russia\u2019s trade transactions and stressed \u200bthe adoption of currencies other than \u200cthe\u200c U.S. \u2064dollar in international trade, facilitated by BRICS.<\/p>\n<p>Moreover, nations like Venezuela\u200b are looking towards BRICS for support against U.S.\u200c sanctions on its oil and gas industry, indicating\u200c a growing \u200binfluence and strategic collaboration\u200b among these nations \u200dagainst the prevailing Western financial dominance. This underscores a broader global \u200dfinancial \u200bshift away from the U.S.\u200b dollar, propelled by geopolitical dynamics and collective strategies among the BRICS nations and their new allies.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"article-content\">\n<p>The 50-year petrodollar agreement between the United States and Saudi Arabia that designated the U.S. dollar as the global-trade currency for oil sales <a href=\"https:\/\/www.msn.com\/en-za\/news\/other\/saudi-arabia-s-petro-dollar-exit-a-global-finance-paradigm-shift\/ar-BB1nYFLK\">ended<\/a> on June 9. The U.S. dollar was essentially the \u201cgold standard\u201d of the global oil trade. Now this is no more, renewing concerns about \u201cde-dollarization\u201d and the future of the American economy. <\/p>\n<p>\u201cOil exporters settle sales in U.S. dollars because the dollar is the most widely used currency, making it easier for them to invest export proceeds,\u201d explains <a href=\"https:\/\/www.investopedia.com\/terms\/p\/petrodollars.asp\">Investopedia<\/a>.<\/p>\n<div class=\"fdrlst__b89e9-paragraph-2-long d-flex justify-content-center\" style=\"margin-left: auto; margin-right: auto; text-align: center; \" id=\"fdrlst__b89e9-74997531\">\n<div id=\"div-gpt-ad-1379703300879-0\" class=\"mb-30\"><\/div>\n<\/div>\n<div class=\"fdrlst__b89e9-74a22bdd930785d5a4d4548cc3968e6f fdrlst__b89e9-paragraph-2\" id=\"fdrlst__b89e9-74a22bdd930785d5a4d4548cc3968e6f\"><\/div>\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\">\n<div class=\"wp-block-embed__wrapper\"> <span class=\"CH1GonUKLwftdWuj1VBSZm6y2SZjquW0nYVzJrP2pmDvDhvbic9Cg45UreORTFi4TkQMaxgcIEYG0p5dKl7sqF88N39\"><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udee2\ufe0f Petrodollar Deal ended yesterday.   The 50-year deal between the USA &#038; Saudi Arabia to sell oil in dollars is over.<\/p>\n<p>This would lead to lower demand of US Dollar. Do you think it gets renewed? \ud83d\udcb8<\/p>\n<p>\u2014 Grant Cardone (@GrantCardone) <a href=\"https:\/\/twitter.com\/GrantCardone\/status\/1800144132624822385?ref_src=twsrc%5Etfw\">June 10, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/span> <\/div>\n<\/figure>\n<p>Last year, <a href=\"https:\/\/www.heritage.org\/monetary-policy\/commentary\/woke-sanctions-and-countries-abandoning-the-dollar-will-ruin-the-world\">the Heritage Foundation<\/a> blamed U.S. sanctions for the continued decline of the dollar. Economist Peter St Onge noted that \u201cunprecedented U.S. sanctions against Russia \u2014 designed as retribution for Vladimir Putin\u2019s invasion of Ukraine \u2014 have been driving friendly countries, from Brazil to Saudi Arabia, away from the dollar and into the arms of the BRICS coalition of anti-dollar nations led by China.\u201d<\/p>\n<p>\u201cThanks to this concentrated push by China, the dollar\u2019s share in global commerce is plunging. Today, only 40% of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">world trade<\/a> is settled in U.S. dollars, down from 52% just a decade ago,\u201d according to St Onge. <\/p>\n<p>Benn Steil, director of international economics at the Council on Foreign Relations, <a href=\"https:\/\/www.japantimes.co.jp\/commentary\/2023\/08\/18\/world\/the-real-cost-of-de-dollarization\/\">concurred<\/a> that \u201cthe biggest threat to the dollar\u2019s dominance comes not from competitive alternatives, but from the U.S. government itself.\u201d According to Steil, \u201cU.S.-led sanctions\u201d created economic hardship for other nations, leading those countries to \u201creduce their engagement with the U.S. financial system.\u201d  <\/p>\n<h2 class=\"wp-block-heading\">The Growing Influence of BRICS<\/h2>\n<p>Nations such as Russia and China have expressed interest in de-dollarization for these very reasons.<\/p>\n<div class=\"fdrlst__b89e9-7f41bba76e623d616454720f6b7bb28c fdrlst__b89e9-paragraph-6\" id=\"fdrlst__b89e9-7f41bba76e623d616454720f6b7bb28c\"><\/div>\n<p>Russian President Vladimir Putin recently <a href=\"https:\/\/www.businessinsider.com\/dedollarization-russia-actively-working-brics-local-currencies-platform-us-dollar-2024-6\">heralded<\/a> de-dollarization at the St. Petersburg International Economic Forum. The ruble now accounts for about 40 percent of Russia\u2019s export and import transactions, according to Putin.<\/p>\n<p>Putin called for increased use of currencies other than the U.S. dollar in foreign trades and noted this will be done with the help of <a href=\"https:\/\/www.reuters.com\/world\/what-is-brics-who-are-its-members-2023-08-21\/\">BRICS<\/a>, an acronym for the partnership formed by Brazil, Russia, India, China, and South Africa in 2009. Its main goal is to challenge a Western-led world order and strengthen its own interests.  <\/p>\n<p>BRICS had continued to grow at a slow pace until last year. Then, in February, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) were <a href=\"https:\/\/www.bbc.com\/news\/world-66525474\" target=\"_blank\" rel=\"noreferrer noopener\">invited<\/a> to join. In the wake of the end of the U.S. petrodollar deal, China is now also seeking a larger BRICS role, according to <a href=\"https:\/\/www.reuters.com\/world\/china-urges-greater-brics-role-western-sanctions-mount-2024-06-11\/\">Reuters<\/a>.<\/p>\n<p>Venezuela is the latest country to seek aid from BRICS to combat sanctions that the U.S. has imposed on the nation\u2019s gas and oil industry, <a href=\"https:\/\/www.telesurenglish.net\/russia-and-venezuela-sign-agreement-to-counteract-sanctions\/\">teleSUR<\/a> reports.<\/p>\n<div class=\"fdrlst__b89e9-1440f48a6dcdbf0b5cbe187fcb09efdd fdrlst__b89e9-paragraph-10\" id=\"fdrlst__b89e9-1440f48a6dcdbf0b5cbe187fcb09efdd\"><\/div>\n<h2 class=\"wp-block-heading\"><strong>American Money Troubles<\/strong><\/h2>\n<p>Meanwhile, the U.S economy has seen increased inflation, record-high mortgage rates, and an uncertain job market. In August of last year, the Fitch rating agency <a href=\"https:\/\/www.reuters.com\/markets\/us\/fitch-cuts-us-governments-aaa-credit-rating-by-one-notch-2023-08-01\/\" target=\"_blank\" rel=\"noreferrer noopener\">dropped<\/a> the U.S. credit rating from AAA to AA+. One-third of Americans believe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-to-show-lockdowns-are-killing-more-people-than-the-virus\/\" title=\"How To Show Lockdowns Are Killing More People Than The Virus\">economic collapse<\/a> will be the death of the U.S., according to <a href=\"https:\/\/fortune.com\/2024\/04\/12\/american-armageddon-economic-collapse-biden-presidency-ipsos-poll\/\">Fortune<\/a>.<\/p>\n<p>While the <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2024\/04\/25\/statement-from-president-joe-biden-on-first-quarter-2024-gdp\/\">Biden administration<\/a> continues to claim the economy is \u201cstrong,\u201d the possibility of de-dollarization is being realized by other nations. \u201cDe-dollarization is unstoppable,\u201d economist Yuefen Li wrote in <a href=\"https:\/\/internationalbanker.com\/finance\/the-dollar-still-dominates-but-de-dollarization-is-unstoppable\/\">International Banker<\/a> in January.  <\/p>\n<p>The end of the petrodollar lessens the power of U.S. currency even more and will lead to increased inflation once foreign holders of the U.S. dollar send that money back. With BRICS gaining more members and the U.S. dollar continuously losing its value and respect, American wealth is on the chopping block.<\/p>\n<div class=\"fdrlst__b89e9-74e1875a374ea8151a6f12f5567899f2 fdrlst__b89e9-after-post-content\" id=\"fdrlst__b89e9-74e1875a374ea8151a6f12f5567899f2\"><\/div>\n<hr class=\"wp-block-separator\">    \t\t\t\t\t   \t\t\t\t\t\t\t\t\t<\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 50-year petrodollar system, which made the U.S. dollar the global currency for oil trades, concluded on June 9. This system had positioned the dollar as the oil trade&#8217;s &#8220;gold standard.&#8221; Its end has reignited worries about &#8220;de-dollarization&#8221; and the implications for the U.S. economy&#8217;s future<\/p>\n","protected":false},"author":1051,"featured_media":2269312,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/06\/Korail_sweet_crude_oil_car-e1718388586775.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2269311","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/06\/Korail_sweet_crude_oil_car-e1718388586775.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2269311","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1051"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2269311"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2269311\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2269312"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2269311"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2269311"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2269311"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}