Countries are concerned about the long-term effects of holding too many dollars

The US government continues to weaponize the US dollar through sanctions

Two major events occurred last week that would have a significant impact on the global future. The first event was the introduction of a new BRICS payment system. In my opinion, this will pose a challenge to the dominance of the US dollar in international transactions.

The most significant development is that the US-Saudi exclusive oil trade deal has come to an end on June 9th, 2024. It was an agreement between the US and Saudi Arabia that the oil trade would be done in US dollars. It is reported that the Crown Prince of Saudi Arabia decided not to renew this agreement, which had been in place for 50 years. In my opinion, this development will change global financial dynamics.

This decision deals a significant blow to the US dollar’s status as the world’s reserve currency, a position it has held for the past five decades.

Saudi Arabia chose to open its oil trade to other countries and currencies, impacting the US dollar’s status as the world’s reserve currency. Saudis say that it wants to diversify its economic partnerships.

For half a century, the US government has enforced the stipulation that oil must be exclusively sold in US dollars, thereby cementing the dollar’s role as the world’s reserve currency. This was undoubtedly one of the most advantageous…