The term petrodollar represents the commercial relations established between a country that buys oil, which pays in dollars, and another that sells oil, the main energy source in the world. The term can also be defined as the capital obtained by oil exporting countries.
The word petrodollar was coined by Georgetown University economics professor Ibrahim Oweiss in 1973. For him, it was necessary to create a term that would characterize the oil crisis that began at that time, a factor that caused the an increase in the values of a barrel of this fossil fuel, triggering an intense flow of capital towards the countries' economies producers.
The facts presented were due to the great influence of the American currency, the dollar, which was and continues to be the reference for the commercial and foreign exchange transactions carried out in the world, however, this has changed, as the euro has emerged in the scenario worldwide.
Today, the large oil producers that make up the OPEC (Organization of Petroleum Exporting Countries) are not restrict to sell only in dollars, but also in other consolidated currencies, thus removing the "status" of the currency American.
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By Eduardo de Freitas
Graduated in Geography
Brazil School Team
Fuels - geography - Brazil School
Would you like to reference this text in a school or academic work? Look:
FREITAS, Eduardo de. "Petrodollar"; Brazil School. Available in: https://brasilescola.uol.com.br/geografia/petrodolar.htm. Accessed on June 27, 2021.
