As America is importing 70% from middle east countries, to secure reliable foreign source US president Richard Nixon in 1940’s sent his secretary of state and national security adviser Henry kissinger to Saudi Arabia for a secret meeting.The result was a pact which still stands this day if Saudi Arabia which at the time was the world’s largest producer of oil would sell the dollar in oil in US dollars America will defend Saudi Arabia and as a direct result this US-Saudi agreement all other oil-producing nations also adopted the dollar as the reserve currency of exchange.With this, the demand of the dollar increased and this gave rise to ‘Petrodollar‘.
This means their currency is only a strong till they demand is high like demand and supply. Petrodollar refers to USA dollars earned through exports of petroleum by oil exporting countries.
More than 70% of bills around the world is in dollars and there is more dollar bills in Russia and China than in America.
This stockpile of US in other countries around the world is because oil is bought in dollars and not in other countries and if oil starts trading in non-petrodollar
Or if china and Russia start using ruble rather than in dollar than dollar demand will decrease and way of life for the average American will be done it will be worse than the Great Depression.
To date anyone potential threat to Petrodollar is Russia and China, that’s why America is so scared from Russia and implying sanctions to Russia in order to take down them but Putin still making eye to eye contact with Russia.
Libyan strongman Moammar Qaddafi publicly pushed for a pan-African backed currency that he would trade for Libya’s oil and he was killed during US backed revolution in 2011.
Few years back Iraqi dictator Saddam Hussein start selling oil for euros at this hour American and coalition forces blamed them for having weapons of mass destruction and invaded them but after that it was found that they don’t have any deadly weapon.
After invasion, America took over and put their own government to support the whole concept of selling oil in euros never surfaced again.
Many countries resent the current petrodollar system and they leading spokesperson is none other than Russian president Vladimir Putin and petrodollar is crucial to the call to war be only holding America.
The only thing holding the America at the top is the Petrodollars and if Petrodollar died so does America as a super power.