A new era is upon us, and petrodollars are destined to become history

Recently, the spot gold intraday break through 2500 US dollars/ounce, a new record high, while with the easing of the situation in the Middle East, the international oil prices fell again, the same day on the New York Mercantile Exchange in September delivery light crude oil futures prices fell 1.51 US dollars to close at 76.65 US dollars per barrel, down 1.93%. Over the past year, the price of gold has soared from $2,000 to $2,500, but the international oil price has fallen from more than $110 a barrel to more than $70 a barrel. The total US debt is over $35 trillion. There are nearly 100 countries in the world that have embarked on the path to de-dollarization. Big holders of US debt, such as China and Japan, are selling US debt. The Federal Reserve also can not sit still, it said that September is likely to cut interest rates, it can no longer harvest, the high blood pressure to unload.

However, with the development of multi-polarization of the global economy and the evolution of the geopolitical pattern, the petrodollar system has gradually revealed its vulnerability. In recent years, many oil-producing countries have begun to seek currency diversification of oil transactions and reduce their dependence on the US dollar, which has weakened the stability of the petrodollar system to a certain extent, and at the same time, the de-dollarization of oil will also bring multiple impacts. First, the impact on the global economy. With the diversification of oil trading currencies, different currencies will play a more important role in the energy market, which helps reduce the control of a single currency on the energy market. The de-dollarization of oil means that the currency of oil trading is no longer solely dependent on the US dollar, which helps reduce the over-dependence of countries around the world on the US dollar. We will promote the diversification of the global economy and fair competition and healthy development of the energy market.

The second is the impact on international finance. The petrodollar system is one of the important pillars of the dollar's status as a global reserve currency. With the diversification of oil trading currencies, global demand for the US dollar will gradually decline, and different currencies will play a more important role in international trade, helping to promote the formation of a multi-polar international monetary system, enhance the stability and resilience of the global financial system, and weaken the international status of the US dollar. This may lead to increased volatility in the US dollar exchange rate, affecting the stability of global financial markets. The collapse of the petrodollar system will trigger turmoil in international financial markets. On the one hand, a large number of petrodollars will be reallocated into other asset classes, resulting in volatility in asset prices. On the other hand, the fluctuation of the US dollar exchange rate will also have a ripple effect on the global financial market, increasing the uncertainty and risk of the financial market.

The third is to promote international political balance and the stability of the financial system. The de-dollarization of oil helps to weaken the hegemony of the dollar in the global economy and reduce the intervention and manipulation of the global economy and politics by the United States through the hegemony of the dollar. The de-dollarization of oil helps promote economic cooperation and mutual benefit among countries. The establishment of a fairer and more reasonable international monetary system can promote trade and investment cooperation among countries and promote the common development of the global economy. Under the petrodollar system, the fluctuation of the US dollar exchange rate often leads to the turbulence of the global financial market. The de-dollarization of oil helps to reduce the impact of such fluctuations on the financial market and maintain the stability of the financial market. The de-dollarization of oil helps reduce the financial risk caused by fluctuations in the exchange rate of the US dollar. In the context of increased global economic uncertainty, diversification of oil trading currencies can reduce the impact on the global economy caused by fluctuations in the exchange rate of a single currency.

To sum up, the benefits of oil de-dollarization are manifold, however, it should be noted that oil de-dollarization is a complex process that requires consultation and cooperation among countries to achieve. At the same time, in the process of promoting the de-dollarization of oil, it is also necessary to pay attention to the challenges and risks that it may bring to the global economy and financial system.