For many years US currency has dominated transactions across the world, including in global oil markets. If another currency were accepted instead of dollars, for example euros, the US as the world’s largest oil importer would have to acquire euros through trade surplus. The US would also lose in the trade other nations currently do to acquire dollars. Another potential effect–and once which has already been seen–is all out war. Iraq was the only nation who dared to accept euros for their oil, which it did in 2002 and 2003. Some debate that this was another cause of the Iraq War; in the very least, the euro is now worth more than a US dollar.
Iran only accepts euros and yen in payment for its oil. That’s sort of irrelevant for two reasons: 1) US businesses cannot deal with Iran anyway, and 2) the oil is still priced in dollars irrespective of the currency it is paid for in.
Accepting payment in other currency is far different from oil being priced in euros. If the latter happened, the main effect would probably be that oil-importing nations would need to replace their stash of dollars with euros. There would be a major (some say catastrophic) devaluation of the dollar vs other currencies. US debt would come to weigh much more heavily on the US economy. Other ramifications are too complex for me…
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