The Petrodollar Myth: How Oil Prices Shape Global Currencies The notion that oil prices are inextricably linked to the value of the US dollar has become a widely accepted idea among economists and policymakers.
However, this "petrodollar" myth obscures a complex web of economic relationships underlying global currency markets.
Understanding the Petrodollar Myth At its core, the petrodollar system relies on an agreement between oil producing countries to price their oil exclusively in US dollars.