Canada and Saudi Arabia Agree to Price Oil Outside the Dollar — The Petrodollar Era Cracks …
Saudi Arabia and Canada have signed a historic $1 trillion economic partnership that could reshape the global financial system. The biggest shock is that their oil and energy trade will no longer use the US dollar. Instead, payments will happen through the euro, Chinese yuan, British pound, and a new joint digital currency.
This is important because since 1974, most global oil has been traded in US dollars under the “petrodollar system.” That system helped America keep low interest rates, strong global influence, and high demand for the dollar.
After the announcement, global markets reacted immediately. The dollar weakened, gold prices rose, and US Treasury yields increased. Financial experts fear that if more countries follow this model, global demand for the dollar could slowly decline.
The agreement also includes cooperation in energy, critical minerals, technology, artificial intelligence, and investment. Reports say even the US government and Federal Reserve are closely monitoring the situation.
Many analysts believe this may not destroy the dollar overnight, but it could mark the beginning of a long-term shift toward a multi-currency global economy.