Q. Consider the following statements: Most oil & gas exporting countries are using the US dollar for their transaction Most oil & gas exporting countries are using Asian Clearing Union Mechanism for settlement Which among the above statements is / are correct?
Answer: Only 1 is correct
Notes:

1. Most oil & gas exporting countries are using the US dollar for their transaction: This statement is correct. A majority of global oil trade is facilitated through the US dollar. This helps mitigate currency fluctuation risks and political uncertainties in oil-exporting countries.
2. Most oil & gas exporting countries are using Asian Clearing Union Mechanism for settlement: This statement is incorrect. The Asian Clearing Union is a payment arrangement facilitating settlement of transactions between member countries. It has nothing to do with oil & gas transactions or exports. These exporting countries predominantly use the US dollar for pricing and settlement purposes.

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