What is the Petrodollar?

View the original post on Musing.io

Petrodollar is gotten from two different words which is "Petrol and Dollar". Thus, "Petrol + Dollar" = "Petrol Dollar".

Petrodollar simply means the national unit of currency earned by a country's sales in petrol through exporting. It actually has to do with the country's earned amount of money as a result of export in petrol.

In conclusion, most countries have their reliable source of income and investment which assist them in developing their economy. Some countries depend on the production of crude oil while some depend on power supply but most importantly we also have some African countries that depend more on petroleum. They tend to export petrol to other countries that may seems to be in need of petroleum for their running activities. The country engaging in exporting of petrol for sale of petrol will earn petrodollar.

Thanks for reading and I hope this helps.