Oil and currency

When they fail to cope with low price periods, some producer countries respond with the devaluation of their currency.

This is possible in cases such as Russia where the ruble follows a floating exchange rate system: the currency devalues ​​and in a certain sense the population pays due to the inflation induced for the greater cost of products imported from abroad.

This monetary mechanism is not possible in most producing countries where the currency exchange rate is pegged to the dollar. There is no other way than to draw on the monetary reserves of the Central Bank. This protects citizens / subjects from price crisis periods, saving them painful tax policies otherwise necessary.

It is a sort of social pact between sovereign and subjects.