Petrodollar Dominance
Dominance of US Dollar ✏️ Glenn Junsay Pansensoy · 📁 Philosophy · ⏱️ 12 min read The Petrodollar · Peso devaluation & Philippine inflation 📄deep‑dive analysis The Petrodollar System and Its Grip on the Global Economy How oil priced in dollars shapes currency markets, fuels peso devaluation, and stokes Philippine inflation The term petrodollar refers to the overwhelming dominance of the U.S. dollar in international oil trade: oil is quoted, invoiced, and usually settled in dollars, and oil‑exporting countries then recycle their surplus “petrodollars” into dollar‑denominated assets such as U.S. Treasuries and bank deposits. [1] [2] This petrodollar system emerged in the 1970s after the collapse of the Bretton Woods gold standard, when the United States struck bilateral agreements with key Middle Eastern oil producers—most notably Saudi Arabia—tying their oil sales to the dollar in exchange for security and political backing. ...