And does that mean the world's oil producing nations are kind of artificially propping up the US economy whilst they could be creating revenue in their own currency for their own economies?
2006-12-03 08:44:00 · 7 answers · asked by Part Time Cynic 7 in Business & Finance ➔ Other - Business & Finance
Strictly, it doesnt have to be BOUGHT and SOLD in dollars, but it will always be PRICED in dollars.
2006-12-07 01:25:22 · answer #1 · answered by johnk1964 2 · 0⤊ 0⤋
It literally cuts both ways. As simplistic as it may seem, others use the ($) US economy as a central hub for world trade and prop it up, as you say, allowing lower exchange rates to undercut US producers. The Arabs do it with oil and the Chinese with cheap labour. The US is still riding post-war highs but it is only a matter of time, unless they do a major share market morph, that their Berlin Wall will be coming down.
2006-12-07 09:27:07 · answer #2 · answered by Ta 3 · 0⤊ 0⤋
This is actually TRUE! The reason being it is always traded in dollars to take the equation of the exchange rate out, you will never ever see an oil price in pounds even if it is British oil!
2006-12-06 10:42:20 · answer #3 · answered by DikiDoo 3 · 0⤊ 0⤋
No not at all. It's just that the largest oil consumer (at the moment) is the USA and the majority of large oil companies are US based so it makes sense for oil prices to be generally quoted in US$.
2006-12-03 08:54:06 · answer #4 · answered by Graham W 3 · 0⤊ 1⤋
Yes that is absolutely correct. Because oil is an extremely large commodity it makes sense to buy and sell in the same currency.
2006-12-08 04:50:53 · answer #5 · answered by manc1999 3 · 0⤊ 1⤋
dont think so i read that iraq had changed from selling its oil in dollars to selling it in euros as one of the reasons why the us went to war
2006-12-03 08:56:30 · answer #6 · answered by Anonymous · 1⤊ 1⤋
yes
2006-12-03 09:29:12 · answer #7 · answered by Mountian Man 2 · 0⤊ 0⤋