What is Petrodollar?

Petrodollar is a dollar earned by the sale of oil. Petrodollars will slip into members of the OPE (OPEC) countries at a stable pace and flow almost as stable, as these countries invest petrodollary abroad. In fact, money often makes a return journey and flows from country, such as the United States, to a member of OPEC, which in turn reinves the funds in the United States.

Oil sale prices are generally listed in the United States (USD). In 1973, the economist Ibrahim Oweiss wanted to come up with a term that would describe large volumes of currency changing hands as a result of the sale of oil. He created Portmanteau "Petrodollar", referring to "petroleum" and the United States. People also use the term "petroleum money" or "petrocure" to describe petrodollars, although "gasoline" is also sometimes confusing to refer to the currency used by oil producing.

at different points of history, members Opec H H, members of Opec have literally produced more petrodollars than they knew, what to do. Rising oil prices have led to such a flood of currencies that these countries were unable to invest in internal development projects. As a result, many nations have begun to engage in practice known as petrodollar recycling, in which they immediately reinvest the currency in banks in regions such as Europe and North America.

oil prices can lead to outflows and flows in petroleum and investment funds available to OPEC members. Some of these nations are strongly relying on the reception of oil sales and are at a disadvantage when prices are depressed. In regions like Dubai, the deep impact of oil sales on regional economies can be seen first -hand in the form of extravagant and rapid development, which reflects the growing wealth of some members of the population.

While most of the oils are made in USD and prices are quoted in USD, some countries have decided to sell in other currencies. USD dominance in globalThe trade is partially credited to Petrodollar, and some theorists have suggested that changing economic trends can lead to a petrodollar cylinder in which there will be pressure to denominate oil sales in other currencies. For example, if the world has switched to Petroeuro, based on the European Union currency, as a result, the United States dollar could be weakened as a result.