The Petrodollar's Enduring Influence The petrodollar system, which ties the global oil trade to the US dollar, has been a cornerstone of international finance since the 1970s.
This arrangement, brokered by Washington and Riyadh, ensures that oil producers receive their payments in dollars, which are then recycled back into the American economy or invested in dollar denominated assets.
The Origins of the Petrodollar The creation of the petrodollar was a response to the 1973 oil embargo imposed on the United States.