Saudi Arabia has decided not to renew its 80-year-old deal with the US, dealing in petrodollars as it will expire in on Sunday, June 9, as per reports.

The country has seen the new trend of shifting from dollars to multiple currencies, effecting the US global economic dominance.

Saudi Arabia will not be required to pay in dollar as some other countries has also began to standardise their currencies.

Saudi Arabia has partnered in Project mBridge, looking towards a collaboration regarding digital currency platform that is split among central banks and commercial banks.

This project began in 2021 that has reached the level of Minimum Viable Product (MVP), asking private sector to develop this platform using different innovative aspects.

The petrodollar system was signed in 1974 as a result of a bilateral agreement between the US and Saudi Arabia.

The United States agreed to provide military support and security assurances to Saudi Arabia, helping to ensure the kingdom’s stability and protection from external threats.

In return, Saudi Arabia committed to investing a significant portion of its oil revenues into US assets, particularly US Treasury securities.

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This arrangement helped to finance the US government’s budget deficits and stabilize the value of the US dollar on global currency markets.

“We consider this a milestone in our relations with Saudi Arabia and with the Arab countries in general,” Kissinger said at the time of the deal.