Why Saudi Arabia Matters in Helping to Keep the U.S. Dollar as the World’s Reserve Currency
Saudi Arabia made the news earlier this week when Prince Bandar bin Sultan, the Saudi intelligence chief threatened to change the cozy relationship that his country has had with the United States for the past few decades. Saudi Arabia, however, did not sever diplomatic ties as the Daily Mail reported. Prince Bandar apparently is upset with the United States’ inaction over Syria and its offer to hold talks with Iran.* On the surface, it may appear that this is an insignificant diplomatic dispute. It’s not.
The United States’ relationship with Saudi Arabia enables the United State to maintain a high standard of living. Saudi Arabia sells plenty of oil to the United States, but that isn’t what makes it one of its most important allies. After all, Saudi Arabia sells oil to a lot of nations.