Petrodollars, simply defined, are oil revenues denominated in U.S. dollars. The petrodollar loop is essentially the global practice of pricing oil exclusively in U.S. dollars rather than any other currency and having those dollars recycled into U.S. assets. So, no matter what country is buying oil, they pay the oil-producing country in petrodollars denominated in Read more
Reserve Currency
Great Greenbacks: Why the U.S. Dollar Dominates Reserve Currency
A reserve currency is held by a nation’s central banks in significant quantities and widely used to conduct international trade and financial proceedings, thus eliminating the costs of settling transactions involving different currencies. Any reserve currency must be easily convertible and have a stable value. The factors that determine the usage of a country’s currency Read more