The Myth of the Petrodollar In 1971, President Richard Nixon ended direct convertibility of the US dollar to gold, sparking a global currency crisis that ultimately led to the petrodollar's dominance.
This system, where oil is priced in dollars and nations must hold reserves of those same dollars to purchase petroleum, has been a cornerstone of international trade for nearly five decades.
The Origins of the Petrodollar The 1970s oil embargo saw Arab oil producing nations demand that their crude be priced in dollars rather than gold.