On: U.S.-Saudi petrodollar pact ends after 50 years

[dralley]

The USD didn't really become the world reserve currency until after WWII when the European empires fell apart and the US was a clear superpower.

[marcus_holmes → dralley]

This. The US Dollar could have crises and be flaky because Sterling was the global reserve currency (and everyone on the gold standard, obviously).

It'll be interesting to see what happens now. I suspect the Russians will play silly buggers because they seem to enjoy that. And they have significant oil to play silly buggers with.

[baetylus → marcus_holmes]

There's an active de-dollarization effort from BRICS. Unsure how effective it'll be with the LIO

[pas → baetylus]

How active and serious that effort is?

https://www.noahpinion.blog/p/brics-is-fake

[ethbr1 → pas]

Brazil, India, and South Africa seem odd bedfellows with increasingly authoritarian China and Russia.

I have no doubts they'll all increase trade together, including military hardware, but establishing a reserve currency requires trust and dependency.

Those seem heavy loads for the ties of pragmatism and convenience that bind BRICS together.