BROADCASTS.com

What are the consequences of Saudi Arabia\u2019s decision on the global economy?

link to My FX Buddies Blog\n

Professor of Economics at Al-Maqal University, Nabil Al-Marsoumi, revealed the implications of Saudi Arabia\u2019s decision not to renew the economic agreement with the United States of America.

Al-Marsoumi stated in a blog post followed by \u201cAl-Eqtisad News\u201d that \u201cSaudi Arabia\u2019s decision not to renew the economic agreement, known as the \u2018Petro-Dollar\u2019 agreement, which was signed with the United States in 1974 for a period of 50 years and related to pricing oil in dollars, would encourage other oil-producing countries to sell oil.\u201d In currencies other than the dollar.

He added, \u201cIt is expected that this decision,\xa0if actually implemented,\xa0will weaken confidence in the dollar globally, decrease its value, raise interest rates, increase inflation levels, and weaken the US bond market.\u201d