Petrodollars

Petrodollars refer to the money earned by countries from selling oil, particularly in U.S. dollars. Since the early 1970s, most oil transactions are conducted in dollars, making the currency essential for global oil trade. This system strengthens the dollar's value and the economic power of the United States. Countries receiving these dollars often reinvest them in U.S. assets, influencing global finance. The concept highlights the interconnectedness of oil markets and currency, showing how energy resources can impact international economics and geopolitics.