Recent Examples of petrodollar from the Web
The plan, launched as a dip in oil prices made Saudi Arabia's economic future look precarious, calls for Saudi Arabia to diversify its economy away from energy and cut the economic flab accumulated after living for decades on a diet of petrodollars.
Nigeria is awash with petrodollars but much of this money does not trickle down to the average man and woman on the street.
Oil was fetching $100 a barrel, and Mr. Maduro’s populist government was showering petrodollars on everyone.
Here come petrodollars, back to save global asset prices.
Once buoyed by Venezuelan petrodollars, Nicaragua can no longer count on that lifeline as Venezuela’s economy has collapsed.
Oil's surge to the highest level in more than three years will in fact spur fuel demand as swelling reserves of Middle East petrodollars are reinvested overseas and stimulate the global economy, Goldman's head of commodities research said.
Dubai’s strategy has been to grow beyond a reliance on petrodollars.
So long as China quarantines its financial system from the rest of the world, talk of a petroyuan replacing the petrodollar will be premature.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'petrodollar.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of PETRODOLLAR
What It Is
How It Works
Let's assume that country XYZ sold US$40 billion of oil in 2008. The money that country XYZ deposits into an American bank is called petrodollars. Country XYZ does this in order to earn the highest return possible on the money and perhaps later use it to fund infrastructure projects, combat budget imbalances, or other governmental initiatives.
A December 2006 study published by the Federal Reserve Bank of New York found that oil exporters use about half of their petrodollars to import goods and services (particularly from Europe and China), while they invest the other half in foreign assets (particularly in the United States). This is important because when oil prices are up, imports to the oil exporting countries go up, which stimulates the economies of the countries the oil exporters are buying from. Likewise, when oil prices are up, the oil exporters make more foreign investments, which tend to drive up prices of securities in the markets in which they invest. However, the reverse is also true. When oil prices are down, fewer petrodollars flow to foreign countries.
Why It Matters
Petrodollars are a good example of how one country's economic prospects affect other countries. For instance, countries that rely on petrodollars for economic stability can experience windfall gains when the price of oil increases. Likewise, they are hard hit by decreases in oil prices, which often causes foreign investors to flee the market and can ultimately prompt these countries to diversify.
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