It's important to consider though that it isn't all about the USA's energy imports. The petrodollar is also about making sure the dollar remains the world's reserve currency.
The fact that China, Korea or India for example have to buy oil in USD rather than in Saudi Riyal or their local currencies, helps the USD.
I also want to point out "petrodollar" isn't a fringe topic. It wasn't when it was first coined, and even if it's spoken-of little nowadays, that's not a measure of its importance. Few people spoke about CDOs before the 2008 crisis. They were about to play a central role in what was to unfold, but people just weren't paying attention to them.
Again, I'm not saying the USD's dominance is about to end tomorrow. I'm just saying it's an error to dismiss this event as unimportant, in this case on the basis that the USA doesn't import as much energy, or that nobody is talking about the petrodollar. It might not be that important, or it might turn out to be. If we do see effects though, I'd expect them to be in the long-term anyway. Geopolitics are slow. The global economy doesn't change course in a day or a year.
> fact that China, Korea or India for example have to buy oil in USD rather than in Saudi Riyal or their local currencies, helps the USD
It is entirely dwarfed by the volume of their non-oil trade.
> Few people spoke about CDOs before the 2008 crisis
Everybody in mortgages, leveraged finance and structured finance was. That’s the point. The experts aren’t talking about the petrodollar; it’s bloggers and commenters.
> wasn't when it was first coined, and even if it's spoken-of little nowadays, that's not a measure of its importance
It was very real in 1974. Post 2008, it’s a fringe element.
> it's an error to dismiss this event as unimportant
Their currency is pegged to the dollar. Nobody from the U.S. seriously pushed to renew the pact; it also limits American diplomacy vis-à-vis Riyadh.
To the degree it’s important it’s in America signalling that to Riyadh that it is disposable, that America’s military and political protection cannot be taken for granted.
The fact that China, Korea or India for example have to buy oil in USD rather than in Saudi Riyal or their local currencies, helps the USD.
I also want to point out "petrodollar" isn't a fringe topic. It wasn't when it was first coined, and even if it's spoken-of little nowadays, that's not a measure of its importance. Few people spoke about CDOs before the 2008 crisis. They were about to play a central role in what was to unfold, but people just weren't paying attention to them.
Again, I'm not saying the USD's dominance is about to end tomorrow. I'm just saying it's an error to dismiss this event as unimportant, in this case on the basis that the USA doesn't import as much energy, or that nobody is talking about the petrodollar. It might not be that important, or it might turn out to be. If we do see effects though, I'd expect them to be in the long-term anyway. Geopolitics are slow. The global economy doesn't change course in a day or a year.