the US dollar isnt backed by oil reserves, its a weak relation. Countries that want to trade oil with eachother must use dollars to purchase it, this is enforced by saudi arabia and the opec countries that have agreed to the practice with the usa. So every country in the world that uses oil tends to hold a reserve of US dollars, thus creating demand and inflating the price of the dollar. As the amount of dollars held in reserve by foreign countries increases or decreases month by month you will get small changes in the value of dollars but the MAJORITY of the inflation is caused by the fiscal policy of the US government. By adding dollars to the money supply or increasing the discount rate from the fed (increasing rates means banks will borrow less money from the fed eg leading to few dollars being in circulation)..
tldr. Foreign reserved for the use of purchasing oil (or simply being a reserve for its own sake) only makes up one of the factors controlling the supply of dollars in the economy. the other three are, government spending, Quantitative easing or tightening, and control over the discount rate.
the price of oil and therefore gasoline is independent from the price of the dollar, the dollar is only bouyed by the volume of oil traded not the price
Fiscal policy (tax rates/spending) is implemented by the government. Monetary policy (money supply/interest rates) is implemented by the federal reserve.
yes.
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