Know a bit more about petro-dollars

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In summary, the conversation revolves around the topic of "petro-dollars", which refers to the practice of using US dollars to trade for oil. Some people believe that switching to the Euro could have negative effects on the US economy, while others dismiss this as a conspiracy theory. Ultimately, the conversation ends with the decision to move the topic to a politics section for further discussion.
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Andy
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know a bit more about "petro-dollars"

Think this is the right place for this thread but please move it if needs be wise mentor person.

Just watched a really interesting programme about a conspircay theory on the iraq war. Just wanted to know abit more about "petro-dollars" but i haven't got time to search the web for it. Thanks people.
 
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More recently, speculation has arisen that OPEC may switch from the US dollar to the Euro, inaugurating the Petroeuro. So far, OPEC has resisted this move although some OPEC members (such as Iran and Venezuela) have been pushing for a switch to the Euro. During Iraq's Oil-for-Food Programme, Saddam Hussein did switch to the Euro and some commentators claim this switch was another factor contributing to the 2003 Invasion of Iraq. As noted by Cóilín Nunan, "A move away from the dollar towards the euro could have a disastrous effect on the US economy" because the US's negative balance of trade is largely offset by its role as a reserve currency.
Thats quite interesting, I'm absolutely useless with economics but last night the tv programme claimed that if the Oil was sold in euro's rather than the dollar then it could bankrupt America. That seems abit far-fetched to me but does that sound possible to anyone out there?
 
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Andy said:
Thats quite interesting, I'm absolutely useless with economics but last night the tv programme claimed that if the Oil was sold in euro's rather than the dollar then it could bankrupt America. That seems abit far-fetched to me but does that sound possible to anyone out there?

It's far-fetched, but there would indeed be noticable impacts. It's probably less now because the dollar (as far as I've noticed when i was even able to notice) has been gaining strength vs. the euro.
 
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Is this thread really boring enough for only you to reply to it?
 
  • #6
Andy said:
Is this thread really boring enough for only you to reply to it?

My penguiny stench is scaring people off. You'd probably get 100x more responses if you toss this in P&WA so we can hear how Bush is to blame for something related to it.
 
  • #7
yea, think i will dump it in the politics section for a laugh, try and cause a fight.
 

1. What are petro-dollars?

Petro-dollars refer to the US dollars earned through the sale of petroleum products by oil-exporting countries. These countries receive a large amount of foreign currency from the sale of their oil, which is often referred to as petro-dollars.

2. How do petro-dollars impact the global economy?

Petro-dollars play a significant role in the global economy as they represent a major source of income for oil-exporting countries. The influx of petro-dollars into these countries can lead to economic growth and development, but it can also create imbalances and volatility in the global market.

3. What are the main uses of petro-dollars?

The main use of petro-dollars is to finance the domestic and international investments of oil-exporting countries. These funds can also be used to pay for imports, fund government programs, and build infrastructure projects.

4. How do petro-dollars affect the value of the US dollar?

Since petro-dollars are earned through the sale of oil in US dollars, they can influence the demand for and value of the US dollar. When there is a high demand for oil, the value of the US dollar may increase, and vice versa.

5. Is the reliance on petro-dollars sustainable in the long term?

There is ongoing debate about the sustainability of relying on petro-dollars as a major source of income for oil-exporting countries. As the world shifts towards renewable energy sources, the demand for oil may decrease, impacting the flow of petro-dollars. This could lead to economic challenges for these countries in the long term.

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