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Speculation has it that perhaps Iraq was dabbling with that idea in the early2000s. Now, though, they have too many other problems to consider revisiting the idea.
Good Day!!!
I don't think USD value will be easily declined. Or USD will be easily replaced with other currency particularly in OIL trade............
It needs another very strong currency to dominate the world........ right now i dont see any of them including EURO..............
Not getting something only the dollar will collapse and be replaced by the new currency, which is the sale of oil
Speculation because the money available markets high then ever do the trading if the oil traded only in usd currency means then ratrs will be stable
The other currency will be of great importance and high price where the demand is greatest
And the dollar would be a simple request and the rate is low and weak economic center
If we closely look at the phenomena of currency hike we will notice that the currency which is in demand will become strong. Now if we look at the oil demand which is always on the high the base currency be it US dollar or any other currency it will also get strong.
So if oil prices are to be based on any other currency than USD then US dollar would not be that strong. It can also be seen that oil is the product of Arab countries mainly by the biggest gainer is US only because prices are being based on USD.
the value of the dollar would drop, economies dependent on the dollar will see a recession i.e. most of the world except those using the currency oil is traded in.
The sources of oil to meet the requirements of the world are concentrated in a few place, and there is nothing wrong in selecting an alternate currency where international clearing for the values can center a place. At present US dollars are considered a best medium for quoting oil prices by the organisation of petroleum exporting countries for the sake of overall convenience for the beneficiary countries.
Yes trading in non dollar terms is risky as other correncies are more volatile than the dollar.
But I think Indian did trade with Iran and iraq importing oil in rupee terms financed by the Indian banks. After thecollapse of the Soviet Union we also had the rupee rouble trade to buy spares of Russian arms. But I do not know whether they were successful and may be I am not authorised to comment. Such decisions are taken by heads of state. I am not even near to any such profile.
As per my knowledge when would oil trading and purchasing in other currency that time currency rate can low then dollar,but sale to dollar currency that time aim to receive the profitability of dollar countries. It mean receive the double Profitability in this trade.
Simply, when oil will trading in other currencies USA don't like this and attack on that country without any reason.
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