Gulf States Deny Secret Plan to Dump Dollar
Earlier, The Independent reported that Gulf Arab states, as well as China, Russia, Japan and France, are in secret talks to end the use of the U.S. dollar to trade oil, causing the American currency to fall in overseas trading Tuesday.
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Written by leading journalist Robert Fisk, the report said Gulf states plan to transition the trading of crude oil over nine years from the U.S. dollar 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 Cooperation Council, including Saudi Arabia, the United Arab Emirates, Kuwait and Qatar.
The report did not make clear how the change would work and raised doubts among some analysts that such a switch could occur anytime soon, despite speculation about the dominant role of the U.S. dollar in global trade and as the world’s main reserve currency.
The issue of shifting oil trade away from the U.S. dollar has been raised occasionally in recent years. Iran began trading …