The end of the petrodollar?

Referring to yesterdays post that BRICS expanded their membership, this expansion might mark the beginning of the end of the petrodollar era. Membership of Saudi Arabia in the BRICS is a large step in that direction. This is why the admission of new members, and the launch of a new currency cannot be viewed in isolation. They are two parts of a common project. The expanded membership is exactly what makes the new currency more feasible.

The US governments aggressive politics, missteps and threads initiated by the start of a trade and currency war with China have strongly contributed to a further alliance between Saudi Arabia and the BRICS nations. The end of the petrodollar era will threaten the dollar dominance in world trade.

Sven Franssen