The Petrodollar's Enduring Influence on Global Trade and Finance The petrodollar has long been a cornerstone of international trade and finance.
Since 1973, when the United States forged an agreement with Saudi Arabia linking oil sales to the US dollar, the petrodollar has facilitated transactions between nations in oil and other commodities while serving as a reserve currency for central banks worldwide.
Understanding the Petrodollar's Role in Global Trade The petrodollar's value rose alongside that of crude oil, amplified by the oil shocks of the 1970s.