The Petrodollar System as a Tool of Geopolitical Power
The Petrodollar System as a Tool of Geopolitical Power

Author(s): Teodor Dobrev
Subject(s): Politics / Political Sciences, Politics, Economy, National Economy, Supranational / Global Economy, Business Economy / Management, Economic policy, International relations/trade, Financial Markets, Socio-Economic Research, Geopolitics
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: petrodollar; U.S.; oil; de-dollarization; BRICS
Summary/Abstract: With the establishment of the petrodollar system in the 1970s, the linkage of global oil trade to the United States dollar has both consolidated U.S. economic dominance and created various structural imbalances in global finance. This paper will examine the formation of the petrodollar throughout the late 20th century, its economic and geopolitical impacts and the systemic vulnerabilities that stem from it. It argues that while the system expanded U.S. power, it did so by fueling wars, dependency and inequality. Fundamental challenges such as de-dollarization efforts and emerging BRICS alternatives are on the rise.

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