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Petrocurrency information


Petrocurrency (or petrodollar) is a word used with three distinct meanings, often confused:

  1. Dollars paid to oil-producing nations (petrodollar recycling)—a term invented in the 1970s meaning trading surpluses of oil-producing nations.[1]
  2. Currencies of oil-producing nations which tend to rise in value against other currencies when the price of oil rises (and fall when it falls).[2]
  3. Pricing of oil in US dollars: currencies used as a unit of account to price oil in the international market.[3]
  1. ^ "Definition of 'petrodollars'". www.investopedia.com. Investopedia. Retrieved 19 October 2018.
  2. ^ Amadeo, Kimberley (2 August 2018). "Petrodollar and the system that created it". The Balance. Retrieved 19 October 2018.
  3. ^ "US dollars no longer a quote currency in Venezuela". Xinhua Net. 18 October 2018. Archived from the original on October 19, 2018. Retrieved 19 October 2018.

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