Home Market Commodity

Saudi Oil US Dollar and Other Global Currencies

Saudi Arabia is one of the world’s largest oil producers and has a significant impact on global currencies through its influence on oil markets. The country is a key player in the Organization of the Petroleum Exporting Countries (OPEC) and has substantial reserves of crude oil.

Oil is denominated in U.S. dollars, and its pricing and trading are conducted predominantly in dollars in global markets. This means that when countries and entities buy oil from Saudi Arabia or other oil-producing countries, they typically pay in U.S. dollars. As a result, the demand for dollars in the global economy is influenced by the need to purchase oil, including Saudi oil.

The relationship between oil and global currencies, particularly the U.S. dollar, can be quite complex. Here are a few key points to consider:

  1. Petrodollar System: The petrodollar system refers to the arrangement where oil-exporting countries, including Saudi Arabia, accept only U.S. dollars as payment for oil. This system emerged in the 1970s when OPEC countries agreed to sell oil exclusively in dollars. It helped solidify the U.S. dollar’s position as the world’s primary reserve currency and increased demand for the dollar.
  2. Currency Exchange Rates: The strength or weakness of a country’s currency can be influenced by its reliance on oil exports and fluctuations in oil prices. When oil prices rise, countries that are major oil exporters, such as Saudi Arabia, tend to see an increase in revenue. This influx of income can strengthen their currency. Conversely, a decline in oil prices can have the opposite effect.
  3. Economic Impact: Oil plays a crucial role in Saudi Arabia’s economy, accounting for a significant portion of its government revenue and export earnings. Fluctuations in oil prices can impact the country’s fiscal health, affecting its ability to maintain its currency’s stability and manage its economic policies.
  4. Currency Diversification: In recent years, Saudi Arabia has taken steps to diversify its economy and reduce its reliance on oil exports. As part of its Vision 2030 initiative, the country aims to develop other sectors, such as tourism, entertainment, and technology. By diversifying its economy, Saudi Arabia seeks to mitigate the vulnerability of its currency to oil price fluctuations.
US Dollar and Oil
Oil Industry

The United Arab Emirates (UAE) is a significant player in the global oil market. It is one of the world’s leading oil producers and exporters, contributing to the global supply of crude oil.

It’s important to note that while Saudi Arabia’s oil exports influence global currencies, they are not the sole determinant. Currency exchange rates are influenced by a wide range of factors, including interest rates, economic indicators, geopolitical events, and market sentiment.

Overall, Saudi Arabia’s position as a major oil producer and exporter gives it considerable influence over global currencies, particularly the U.S. dollar. However, the relationship between oil and currencies is complex, and various factors contribute to currency exchange rate dynamics.

Chickpeas Commodity

What is the Demand for Chana (Chickpea) Commodity, and Which Companies are Dealing with Chana?

Chickpea, popularly known as Chana, is one of the most desiring pulses in the Subcontinent. The highly essential Rabi crop is down during the time of October to November, but it harvests from February to March. India is one of the largest users of Chana, and the ruling producers are Madhya Pradesh, Karnataka, Rajasthan, Andhra Pradesh, and Uttar Pradesh. 

The Demand of Chana Commodity

Todays(06/06/2021) value of Chana Gram is 5,177 and in a down trend. But In 2021 due to unseasonsal rains, lower carry forward stocks did a good impact in the price of Chana. on 2021 April Chana price went to 5777.67 Inr.

In 2019, the subnormal growth demand of Chana and a proportionate supply of it force the market to lower the trade level. According to the statistics, Chana Gram price was at INR 4,200 to 4250 a quintal, while on the other hand, Desi Chana rate was INR 4,150 in the Indian markets. When it comes to Vishal Chana, per quintal price rate was 4,100 Indian rupees.

When we look at the Stats, we know that since the start of December 2018, the future of Chana has seen under pressure. As per the reports of the National Commodities and Derivative Exchange (NCDEX), the price level for Chana commodity fell about 6.7 percent till date.

 The reason for low price rate of Chana commodity is because the output came in higher during the last two years by producing and importing a high amount of the product. As per the records, India imported over 31 lac tonnes of the commodity in the past three years. Moreover, the supply (100 tonnes) raised more than the consumption (70-75 tonnes), which results in the fall of the Chana demand.  

Companies that are dealing with Chana (Chickpea) Commodity

India is the biggest importer of Chana, and it imports Kala Chana, Split Chana, and other types of the product from many countries like Pakistan, Australia, Myanmar, United Arab Emirates, Kenya, etc. As e-commerce is popular more across the globe, you can buy any variety of Chana from one of the largest online store, indiamart.com. Moreover, you can also buy from another accredited e-commerce website, Amazon. If you don’t want to buy from the site, then go for the Indian domestic markets, and you will get high-quality Chana from there.

What are the famous Chana Dishes in India?

In India, there is a diversity in the dishes of Chana, and people love to make different types of it with the use of local masala (Spices). Whether you like Kala Chana, Chana Dal, Chana (Chickpea) Curry, White Chana, or others that can serve with either rice or Roti (tortilla), you can find the variety of the dishes in almost every traditional restaurant of the country.