US dollar ...... Saudi Arabia oil

Discussion in 'Economics' started by BKR88, Jun 13, 2024.

  1. SunTrader

    SunTrader

    Did you forget mentioning dumping of USD as well?

    Or are you picking and choosing why countries are doing what?
     
    #11     Jun 13, 2024
  2. SunTrader

    SunTrader

    Wow looking all that USD dumping, even though price is higher than 4 years ago and well above 50% to range and presently in an uptrend since Dec'23:-

    ! DXY weekly.png
     
    #12     Jun 13, 2024
  3. GreatCamel

    GreatCamel

    Has anyone actually seen this so called "50 year 'petro-dollar' agreement" or has such statement been made by any govt official of non-renewal?
     
    #13     Jun 13, 2024
    murray t turtle likes this.
  4. BKR88

    BKR88

    The price of the USD has nothing to do with the reserve currencies a country holds.
    The price of the USD is just RELATIVE to other currencies.
    When a country holds currency reserves, they don't buy truck loads of $100 bills that pay nothing.
    They buy treasuries which pay interest.
    I know you're aware of this but I don't understand why you're bringing the price of USD or Yuan into the conversation.
    China is dumping US Treasuries. Russia has sold all US Treasuries. That's all I was saying.
    I don't want to discuss further so my final comment. :)
     
    #14     Jun 13, 2024
  5. SunTrader

    SunTrader

    Ok, my final comment as well ... WTF?
     
    #15     Jun 13, 2024
  6. piezoe

    piezoe

    The Saudis will still sell oil for dollars, just not exclusively. This seems to me to be an inevitable continuation, and perhaps an acceleration, of what has been taking place for sometime, viz., the U.S.D. sharing more and more of its reserve currency role with other currencies. The currencies that one likes to hold in foreign currency reserve accounts are those offering the best stability of purchasing power, the greatest liquidity, and backing by the strongest and most stable economies and governments. The tremendous liquidity, stability and availability of U.S. Treasury securities has certainly helped maintain the U.S.D's reserve status. Thus I hate to see those idiots in Washington fighting over complete nonsense, i.e., The "debt ceiling". This is an absurdity. (There are sound reasons Congress should tax more and create, in aggregate, correct size deficits. Playing their childish "debt ceiling " game is decidedly NOT helpful.)
     
    #16     Jun 13, 2024
  7. mervyn

    mervyn

    no one outside has seen it. as any docs in the government, the text is classified, only the readouts. saudi just leaked to the press for a better bargain. but de-dollars is on the way long time ago.

    https://www.archives.gov/files/reco...-the-treasury/rg-0056/n1-056-95-002_sf115.pdf
     
    #17     Jun 13, 2024
    murray t turtle likes this.
  8. %%
    Actually I looked;
    what do the big banks think, they have more in the game than any of us?
    BIS notes US $ 88% currency trades on one side [2022/ looks about the same 2024]
    Brazil still underveloped+ russia in disrepair, latest big bank note.
    2 ]IF USa $ did lose ,no disresepct to Gerorge Soros, UK pound lost 1st place;
    so just make sure not to depend on island empire of coal mines only , or North Sea only.
     
    #18     Jun 13, 2024
  9. Peter8519

    Peter8519

    IF a currency is backed by gold, then a holder of a currency has a right to demand for gold. Even the Swiss terminated it in 2000. Currency is relative and higher currency value will impact export.
     
    Last edited: Jun 13, 2024
    #19     Jun 13, 2024
    SunTrader likes this.
  10. smallfil

    smallfil

    We shall see how it turns out. The financial rules are still being written. Nobody knows what form it will take. One thing is sure. Removing the US dollar as reserve currency will hurt the US. No amount of spin can change that.
     
    #20     Jun 13, 2024