A part of those petrodollars could flow back into the global markets if oil producing countries boost investments in various asset classes, according to some large investment banks. These potential new petrodollar inflows could be a shot in the arm for global markets at a time when central banks around the world are starting to normalize their monetary policies. Yet, as oil producers struggle to patch up budget deficits caused by the oil price rout of 2014-2016, it shouldn’t be taken for granted that the increased petrodollar incomes at sovereign wealth funds and forex reserves of the oil nations will necessarily translate into a huge ‘recycling’ of the newly earned dollars into the global markets. That’s because many of the oil exporters—especially those in the Middle East—still need to plug budget gaps and finance increasingly investment-intensive projects at home. Case in point—OPEC’s largest exporter and de facto leader Saudi […]