The recent fears regarding the world moving on without the petrodollar received even more justification this past week as Russia announced a multi-billion dollar oil-for-goods deal with Iran. By developing the deal without the exchange of petrodollars, Russia has effectively taken another shot across the bow of the West.
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According to Reuters, “Iran and Russia have made progress towards an oil-for-goods deal sources said would be worth up to $20 billion, which would enable Tehran to boost vital energy exports in defiance of Western sanctions. The White House has said such a deal would raise ‘serious concerns’ and would be inconsistent with the nuclear talks between world powers and Iran.”
This news comes on the heals of a recent announcement of a landmark deal between Russia and China that would make Russia the largest supplier of natural gas to the growing world power.
An analysts at ZeroHedge.com feel that these moves show that “Russia seems perfectly happy to telegraph that it is just as willing to use barter (and, heaven forbid, gold) and shortly other regional currencies, as it is to use the US Dollar. This is hardly the intended outcome of the western blockade, which appears to have just backfired and further impacted the untouchable status of the Petrodollar.”
The United States is taking a hard stance on the world stage and it just might be at the expense of the petrodollar, further decreasing the global dominance of the US Dollar.