Potentially the worst news since the Great Depression

Oil Traders to Ditch the Dollar…

Published by Andy Rowell October 6th, 2009 in China, Middle East, Russia, US foreign policy, oil trading

The dollar is sliding on the currency markets this morning after reports by the Independent newspaper that Arab states are in secret talks with China, Russia and France to stop using the US currency for oil trading.

The move – if it happens – would be the most profound financial change in recent Middle East history, argues the paper. It would send shock-waves through the international oil market, and change the geo-political landscape. The story, written by the highly respected Robert Fisk, has already led to a rush of denials that this is about to happen.

According to Fisk, “the Gulf states 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.”

Apparently secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil.