In These New Times

A new paradigm for a post-imperial world

The great sell-off of petrodollar assets

Posted by seumasach on April 15, 2015

Oil-Rich Nations Are Selling Off Their Petrodollar Assets at Record Pace

GEAB(Source: Bloomberg)

April, 2015

In the heady days of the commodity boom, oil-rich nations accumulated billions of dollars in reserves they invested in U.S. debt and other securities. They also occasionally bought trophy assets, such as Manhattan skyscrapers, luxury homes in London or Paris Saint-Germain Football Club.

Now that oil prices have dropped by half to $50 a barrel, Saudi Arabia and other commodity-rich nations are fast drawing down those “petrodollar” reserves. Some nations, such as Angola, are burning through their savings at a record pace, removing a source of liquidity from global markets.

 

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