Petrocurrency
a.k.a. Oil currency
A currency whose value rises and falls with the price of oil because the country exports a lot of it.
In plain English
A currency whose value rises and falls with the price of oil because the country exports a lot of it.
A petrocurrency is the currency of a big oil exporter. When crude prices rise, more foreign money flows into the country to buy its oil, and the currency tends to strengthen. When oil slumps, the currency often slumps with it. The Canadian dollar, Norwegian krone and Russian ruble are textbook examples.
The link is real but not iron-clad. Interest rates, politics and the US dollar can overpower it for long stretches.
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