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What is the petrodollar?

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What is the petrodollar? Petrodollars are the form of currency that is paid globally for oil. The petrodollar system is essentially the global practice of exchanging oil for US dollars, rather than any other currency.

This means that no matter what country is buying the oil, they pay the oil-producing country in petrodollars, which are denominated in US dollars.

The answer to “What is the petrodollar?” has changed over the years, as the petrodollar system originally only applied to Middle Eastern countries and members of Organization of the Petroleum Exporting Countries (OPEC), but has been broadened over the years.

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