Independent: Middle East In Talks With China, Russia To End Dollar Dealing For Oil

October 6, 2009 at 10:37 am  ·  Category: Commodities, Currencies, Foreign Exchange, Market Commentary

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

“The Demise Of The Dollar”, Robert Fisk, The Independent, October 6

This story appears to be driving a lot of the selloff in the dollar, rise in gold and consequent ripple effect in other financial markets today.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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