In a new blog post, the Atlantic Council suggests that ending the 1974 petrodollar agreement between the US and Saudi Arabia could diminish the dollar’s dominance in the oil market and advance de-dollarization. This deal has mandated Saudi Arabia to sell oil exclusively in dollars, reinforcing the dollar’s global financial role.
However, shifts in the global economy, reduced US reliance on Saudi oil, and Saudi Arabia’s growing ties with China and the BRICS bloc are prompting a reevaluation. If alternative payment systems like mBridge gain traction, it could weaken US Treasury liquidity and the dollar’s global influence. Saudi Arabia’s future approach to the petrodollar will be a key indicator of the evolving financial landscape.
