With the end of the "gold standard" where there was a fixed price for gold and every currency linked to the value of gold, the gold standard was abandoned in 1971, causing a free fall in the value of the dollar and an insane rise in inflation rates, the deal that arose in 1973 between the United States and Saudi Arabia Things returned to normal, and what is known as the petrodollar appeared to us, which includes pricing, trading and recycling of oil and the money generated from it in US dollars only.
I am not trying here to say that the system that created the petrodollar system may come to an end, but some changes have already begun to occur, as the Central Bank of India unveiled a new framework for settling global trade in rupees.
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First, the two giants agreed to settle trade in their local currencies — in an effort to cut transaction costs and eliminate dollar conversions. They also agreed to set up a real-time payment link to simplify cross-border money transfers.
The agreements will enable “seamless cross-border transactions and payments, and foster greater economic cooperation,” the Reserve Bank of India explained in a recent statement.
The agreements will enable “seamless cross-border transactions and payments, and foster greater economic cooperation,” the Reserve Bank of India explained in a recent statement.
https://finance.yahoo.com/news/dollar-being-dethroned-india-just-201500390.html?guccounter=1
Can we say that trading using local currencies has become an attractive trend, especially with countries beginning to diversify their reserves, or is everything that is happening an attempt to put political pressure on the United States?