The petrodollar pact between Saudi Arabia and the United States, concluded in 1974, has ended its operation. This opens up the possibility for Saudi Arabia to trade oil and other goods not only for US dollars, but also in other currencies. The agreement was signed on June 8, 1974 and provided for the creation of two joint commissions – on economic cooperation and on the military needs of Saudi Arabia. The United States persuaded the Saudis to trade oil exclusively for dollars in exchange for military aid from the United States, which became the basis of global oil trade in the next 50 years. The contract expired on June 9, 2024, and the decision not to renew it allows Saudi Arabia to sell oil and other goods for yuan, euros, yen and other currencies, including digital ones such as bitcoin. This decision symbolizes a gradual departure from the petrodollar system, established in 1972, and is expected to accelerate the global abandonment of the US dollar.
