Uncertain future of petrodollar: Will it have any impact on the Nepali economy?

A word known as petrodollar has been used to denote the US dollar’s hegemonic status in global oil trading. Since the United States and Saudi Arabia struck a deal that designated the dollar as the currency for oil transactions, the term petrodollar gained existence in the 1970s.

Countries that wanted to buy oil from the Organization of the Petroleum Exporting Countries (OPEC) were required to do so using US dollars under this arrangement, sometimes known as the petrodollar system. The need for countries to hold dollars in order to buy oil resulted in a persistent demand for dollars in the global economy.