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Re:Saudi Arabia threatens to ditch dollar oil trades to stop... by fxj on Friday April 05, 2019 @04:38AM (#19580792)
Why shouldn't europe then buy oil directly in euros? How does it make sense to first buy dollars and then buy oil if it is not mandatory? The saudis would happily take hard euros I suppose.
Re:Saudi Arabia threatens to ditch dollar oil trades to stop... by JumpCrisscross on Friday April 05, 2019 @04:54AM (#19580848)
> Why shouldn't europe then buy oil directly in euros?

Until recently, the Euro electronic transmission system was far slower, and less immutable, than the Fedwire system. This has recently changed. Otherwise, the superior investment environment in the U.S. (i.e. higher yields) and broader international acceptance of dollars would be marginal issues. At this point, Saudi Arabia selling all its oil in dollars is a bit of an anachronism.