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Foreign inflows trump crude as biggest driver of ruble Latin American currencies move in opposite direction to oil The currencies of some of the world’s biggest crude exporters are breaking their historic relationship with the oil price. The Canadian dollar has weakened, the Norwegian krone is little changed and the Russian ruble has strengthened just 4 percent in the past three months even as the price of Brent crude has surged 16 percent and West Texas oil 10 percent. In commodity-rich Latin America, the 90-day correlation between currencies and oil turned negative last month for the first time since 2014. Commodity currencies are typically more correlated with oil when it is falling because a decline in prices often indicates a drop in demand, which is disproportionately damaging to energy-dependent economies. The link rose during the 2015-16 oil price slump, but now that

ROCKMAN wrote:Sub - I agree. So decided to step back and look at the big picture. In doing so the idea of the "petrodollar" (better stated as the petrocurrency) seems increasingly less important. Total export trade in 2016 != $16 trillion. Total oil export trade the same year = $710 billion. Or about 5% of all global export trade is represented by oil exports.

What the numbers do indicate is how the production of fossil fuels is critical to the global export trade: how much export trade would take place if there were significantly less ff?