US

Each time when oil prices rise on US controlled International Petroleum Exchange (IPE) of London and New York Mercantile Exchange (NYMEX), more dollars are needed in the world. [17] As 85 percent of the oil trade takes place outside the US, for each extra dollar needed inside the US, seven dollars are needed outside and result in free shopping. To increase the foreign dollar demand still further, the US Federal Reserve sells Treasury Bonds to foreigners, which reduces the amount of dollars abroad.
This increases foreign demand for dollars and raises the exchange rate. To stop the exchange rate from rising continually, new dollars have to be