If all the Dollars of Saudi Arabia, Iran, Venezuela and Kuwait, were exchanged to Euros,?

Question

...could it cause a collapse of the US Dollar?

Answer 1

Yes. OPEC has about $500bn in petrodollar transactions per year. If for some reason these were converted into Eurobonds rather than US treasuries, then the US dollar would devalue significantly due to the selling of dollars. However, this would never, ever happen since the buying of US Treasuries is meant to help keep US dollar strong (and help prop up oil prices) on a relative basis. OPEC countries wouldn't do this since it would hurt them the most and actually help the US to devalue their deficit.

Answer 2

No

Answer 3

no