IDEAS home Printed from
   My bibliography  Save this article

Policy issues related to substitution of the US dollar in oil pricing


  • Musa Essayyad
  • Ibrahim Algahtani


This policy paper attempts to evaluate the viability of switching from the US dollar to the euro in international oil pricing. If materialised, the switch would not impact only OPEC nations but would also have ramifications for other oil exporting as well as importing nations. It would also have considerable effect on US economy and international financial system. This paper recommends that in deciding which currency to use in oil pricing, OPEC member countries should not allow their positive or negative political rapport with the US Government to distort their rational choice. Switching to euro or any other currency will not eliminate loss of revenue, as the newly adopted currency will not be immune either from the exchange rate gyrations. In fact, there is no guarantee that the euro, yen, sterling pound, or any other major currency will be immune from fluctuations. As a way out, this paper recommends three alternatives.

Suggested Citation

  • Musa Essayyad & Ibrahim Algahtani, 2005. "Policy issues related to substitution of the US dollar in oil pricing," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 23(1), pages 71-92.
  • Handle: RePEc:ids:ijgeni:v:23:y:2005:i:1:p:71-92

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Elbeck, Matt, 2010. "Advancing the design of a dynamic petro-dollar currency basket," Energy Policy, Elsevier, vol. 38(4), pages 1938-1945, April.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijgeni:v:23:y:2005:i:1:p:71-92. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carmel O'Grady). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.