The myth of the petrodollar

石油美元的神话

Economist

2026-05-10

7 分钟
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  • Economists like to preach prudence,

  • but they do not always practise it.

  • Ibrahim Oweiss was a young economist in Egypt's Ministry of Industry

  • when he offered some frank advice to his bosses.

  • He warned against a suffocating overconcentration of industry in Cairo and Alexandria.

  • And he later criticised General Nasser's hollow boast

  • that Egypt made everything "from the needle to the missile" (it made neither well).

  • This incaution made it safer for him to leave the country in 1960,

  • and hard to return.

  • In 1974, as a professor at Georgetown University in Washington,

  • Oweiss turned his attention to another troublesome concentration of assets:

  • the dollars accruing to the Gulf's oil exporters faster than they could make use of them.

  • "I wish to introduce a new term: petrodollars,"

  • he said at a speech in March that year.

  • This ensured the word would always be associated with his name

  • (although it had also appeared in an earlier testimony by Peter Peterson,

  • a former American commerce secretary).

  • Petrodollars, originally viewed as a threat to America and other oil importers,

  • were later seen as the saviour of America's currency and a cornerstone of its financial might.

  • At the end of 1974 the Treasury Department agreed to let Saudi Arabia's central bank buy Treasury bonds in secret,