Investopedia agrees with what I wrote. People use USD because they want to. No one is stopping petroleum sellers from accepting other currencies, but the petroleum sellers believe USD will buy them what they want (more than other currencies).
> Petrodollars are crude oil export revenues denominated in U.S. dollars (USD). The term became widely used in the mid-1970s when soaring oil prices generated large trade and account surpluses for oil-exporting countries.
>Then, as now, oil sales and the resulting current account surpluses were denominated in dollars because the U.S. dollar was—and remains—by far the most widely used currency.
>The U.S. dollar's global popularity doesn't depend on the goodwill of oil exporters. It's based on the U.S.'s status as the world's largest economy and goods importer, with deep, liquid capital markets backed by the rule of law and military power.
And then again, historical events usually drive current status quo.
My initial comment was a recommendation on understanding the current state of the USD as the reserve currency given historical events.
There is a good chance that these things will chance.
But the history take time to unfold. And changing the worlds reserve currency does not happen over night - especially not 10-20 years ago when cash transactions were much more predominant.
But let's continue this talk in 10-20 years and see if the USD is still the reserve currency. And if it is, if we can attribute that to some obscene political moves, like adding 100% tarifs to economies trying to exercise their free choice of currency.
https://www.investopedia.com/terms/p/petrodollars.asp
> Petrodollars are crude oil export revenues denominated in U.S. dollars (USD). The term became widely used in the mid-1970s when soaring oil prices generated large trade and account surpluses for oil-exporting countries.
>Then, as now, oil sales and the resulting current account surpluses were denominated in dollars because the U.S. dollar was—and remains—by far the most widely used currency.
>The U.S. dollar's global popularity doesn't depend on the goodwill of oil exporters. It's based on the U.S.'s status as the world's largest economy and goods importer, with deep, liquid capital markets backed by the rule of law and military power.