The post No, Saudi Arabia isn’t ditching the dollar for Ripple in its oil trades appeared on BitcoinEthereumNews.com.

There is a legend that in 1973, US president Richard Nixon and secretary of state Henry Kissinger made a secret deal with Saudi Arabia to price oil exclusively in dollars, thus pegging the currency to oil and birthing the petrodollar. According to the myth, the US provides military protection for Saudi Arabia’s oil fields in exchange for the kingdom’s role in enforcing US dollar hegemony over the world’s most valuable commodity market. Supposedly, the country’s sovereigns signed a 50-year petrodollar pact on June 6, 1974, which expired on or around June 9, 2024. If that were true, this week would be one of the most historic weeks in the history of the US dollar. It should be primed for an immediate crash, according to the theory, to the immediate benefit of emerging currencies. Some articles go so far as to claim, “Crown Prince Mohammed bin Salman has informed the Saudi government that the country will no longer accept US dollars for oil transactions.” Yes, there are people who actually believe that, with many posting that Saudi Arabia was somehow dedollarizing as we speak. Moreover, believers in this ostensible expiry even claim that it would benefit Ripple’s technology or Central Bank Digital Currencies (CBDCs). Indeed, members of the XRP Army posted vague claims that the event would catalyze an agreement by the Saudi central bank to use Ripple for oil payments or a transnational BRICS stablecoin. Read more: Crypto Twitter misinterpreted everything in SEC v. Ripple Crypto believed in Saudi Arabia’s oil-for-dollars pact Of course, the reality is that almost all oil trade has been and will be priced in US dollars (or dollar-settled US treasury equivalents) for many years to come. This is not because the kingdom signed an ancient document but simply because the US dollar is the world’s most…

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Filed under: News - @ June 13, 2024 1:28 pm