If China and the Saudies starts asking for payment in Euros instead of dollars, then what?

Question

What now costs a buck will suddenly cost a buck forty. I dunno....somehow that gets me worried.

Answer 1

Then the US would be in a heap of trouble. This issue of changing the currency to something other than the dollar for oil has been debated for at least 20 years. Now the US debt that China and Japan hold is a different story. The Euro doesn't figure in. What matters there is the value of the dollar against their respective currency and whether their currency is pegged against the dollar or not.