What would the consequences of OPEC valuing oil in an currency other than US$ be for the US?

Answer 1

The US economy will crumble. And along with foreign countries that hold a lot of US currency and foreign companies that invest heavily in US economy.

Answer 2

Little or no impact. I really don't understand why people think it would have a negative impact (notice those people who do, do not attempt to explain their opinions), though I could guess at a few imagined reasons that are wrong.

In reality though, nothing about pricing oil in some other currency would have much of an impact on demand, employment, allocation of resources, or any other economic fundamental. Americans are not going to quit buying things just because on the other side of the world some German doesn't have to convert his Euros into Dollars when he buys a barrel of oil.

Answer 3

The US$- aaahhh!! where are the days it reigned supreme? and the US economy was a benchmark?

The USA today is the biggest trade and loan debtor. One of the reasons for it's currency to be afloat till date is international trade, more specifically, bulk of Oil trade being carried out in US$.

The international value of US$ will take a tailspin sooner rather than later.

Valuation and trade of Oil in currencies other than the US$ will expedite matters.

Answer 4

It wouldn't matter much. Dollar-valued oil prices rise because the dollar falls; if priced in euros during the same period, it would not have fallen so much in nominal terms but probably about the same amount when converted into dollars.

Transaction costs would increase for the US, but those would be only a tiny fraction of a %.

Answer 5

Probably very bad for the U.S. since the U.S. dollar keeps diminishing in value as compared to so many other currencies! It would make fuel more expensive - as if we need that!

Answer 6

They are strongly considering the EURO!

There is no real reason for them to trade in dollars. Especially with our ridiculous trade deficit.