<p><strong>Petrodollar</strong> refers to US dollars earned from crude oil exports. It's a term used to describe the phenomenon where oil-producing countries sell their oil primarily in US dollars, leading to a significant global demand for USD.</p>
<p>Petrodollars matter because they contribute to the USD's status as the world's primary <a href="/NewSite/encyclopedia/reserve-currency/" class="ency-link">reserve currency</a>. This status provides the US with several economic advantages, such as lower borrowing costs and global acceptance of the USD for international transactions. For instance, in 2020, around 80% of global oil trades were denominated in USD, illustrating the petrodollar's significant influence on the forex market.</p>