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ejpierle t1_jegdkdi wrote

Reply to comment by VinylJitsu in ELI5: why does the US need the dollar to be the only primary form of currency for oil? by aresyves

You got a source for this? Because I can't find one. I don't think the US has any say over whether Nigeria can buy oil from Saudi Arabia in US dollars. If Nigeria holds US dollars that it obtained legally, I don't see any way that the US can stop them from using them from purchasing good and service from anyone who will accept them as payment.

The real answer is that as long as the USD is the reference currency of commerce around the world that other currencies base their value on, the US can continue to print money without it greatly affecting its value. That's why we work so hard to make sure that the USD is what everyone uses...

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Omniwing t1_jegfdzd wrote

We do though. The Nigeria can not buy oil from Saudi Arabia for any currency other than U.S. dollars. So if Nigeria doesn't have dollars, the easiest way to get them is to sell goods to the US for dollars, and then use those dollars to buy oil.

Also, Henry Kissinger went to Saudi Arabia in 1973, and we made a deal with them that they will not sell oil for any other currency other than dollars, and we will make sure the Sauds stay in power in the region and in their kingdom.

This is one way the U.S. holds it's hegemony over the world.

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ejpierle t1_jeghjrr wrote

>The Nigeria can not buy oil from Saudi Arabia for any currency other than U.S. dollars. So if Nigeria doesn't have dollars, the easiest way to get them is to sell goods to the US for dollars, and then use those dollars to buy oil.

Well, that's not exactly the same thing. We can try to make sure a country we don't like doesn't have dollars to spend by not trading with them, but if they have dollars they can trade them for goods with anyone who will accept them. We can't say, "hey, you can't use your dollars to buy what you want bc that's our currency." And bc USD is the reference currency and is held by governments and private entities worldwide, what's to stop Nigeria from trading with someone else to get THEIR dollars and then using them to buy oil? The most circulated bill worldwide is the $100 USD. It's the currency of everything from commerce to crime all over the world.

>According to the Federal Reserve Bank of Chicago, nearly 80 percent of $100 bills—and more than 60 percent of all US bills—are overseas, up from roughly 30 percent in 1980.

https://www.imf.org/en/Publications/fandd/issues/2019/06/what-makes-the-US-100-bill-so-popular-currency

There's no stopping the world from using their dollars amongst themselves for whatever they want.

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aresyves OP t1_jeger9c wrote

Yeah I was a little weary of that response too. Only because then wouldn’t other countries start a war with US for blocking oil transactions? Hopefully I understood this correctly

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