It is not a secret that the dollar is known as the universal currency, most of the money in the world moves based on the dollar. Many countries underestimate their relationship with the dollar, there we have the case of Venezuela; an economy that, without being based on this currency, takes it as a reference for daily life, thanks to the fact that the country survives on imports of products.
So, we speak of Venezuela because it is an oil-exporting country, but in this case we do not want to highlight the country’s relationship with the dollar, but rather the relationship of the rest of the countries that produce and import oil.
The situation is this: most of the oil countries are in the east; They are Arab countries. These are the countries that are promoting the use of the Euro for transactions related to the sale of the resource.
Why are oil-exporting countries against the dollar?
The answer is quite simple, although the actions that have led to this outcome are not. For no one is a secret that, for a few years, the government of the United States has declared war (in more than one way) to the countries of the Middle East. Many agreements signed by the United States government seek to close the business options of these countries with the rest of the world.
Imagine that you are a Middle Eastern country and the owner of the dollar blocks you. What are you going to do? Simple, you look for an alternative currency.
In fact, that is what they are doing, the countries that export oil; they are leaving the dollar and its complications, to start trading with the euro which is a more friendly currency for them. In fact, France, for example, has signed agreements with the Middle East to offer credits for the acquisition of raw materials and other resources for their normal operation of the activities.
At the end of the day, for Arab countries it is much easier to buy and sell in euros because it is the currency they use almost daily (to pay their credits, for example).
What is the future of the dollar?
The dollar still has its power in the markets of the world. If you review the news we see that the dollar frequently shows increases in its value. Even so, there is no doubt that the migration of one currency to another cause discredit in the dollar and other sectors of the economy can move to the use of other currencies such as the yen or the euro.
Obviously this does not end there, because we are not only talking about the dollar exchange for the euro, but the widespread use of electronic currencies such as Bitcoin that could cause traditional currencies to become obsolete.
Still, the dollar is being pushed aside for oil-related transactions and we will soon see the consequence of it.