FX.co ★ Petrodollar may disappear in near future

As a rule, problems in the US are the main reasons for joy in Russia. US edition American Thinker published an article written by columnist Darlene Casella, where the author tackles the issue of the petrodollar’s gloomy future.

Darlene Casella supposes that Joe Biden’s policy is negatively affecting the future of the petrodollar. She also thinks that China’s intention to buy oil for yuan may undermine the dominance of the US dollar in the global oil market. What is more, a conflict between the US and Saudi Arabia may only add fuel to the fire. “Another fly in the global monetary ointment, Vladimir Putin insists that nations pay for natural gas in rubles. Russia is also selling oil to India in India’s own currency, the rupee, and to Turkey in Turkey’s currency, the lira,” Darlene Casella wrote in the article.

Earlier, Xu Polin, a researcher at the Chinese Academy of Social Sciences, pinpointed that the emergence of a “gas ruble” might signal a turning point in the international monetary system. “The ‘gas ruble’ is not equivalent to the ‘petrodollar’, but its existence may mean that the international monetary system has reached a turning point,” he explained.