Oil States Plot to Ditch Dollar
Gulf Arabs in talks to replace greenback with mix of currencies
By Rob Quinn,  Newser Staff
Posted Oct 6, 2009 1:20 AM CDT
Gulf states are planning to replace the dollar in oil trading with a mix of currencies including the yen, the euro, and the Chinese yuan.   (Shutter Stock)
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(Newser) – The American dollar is dropping against the yen and euro amid reports that the Gulf states are planning to replace use of the greenback in oil trading in favor of a basket of mixed currencies. The Arab states are in advanced discussions with China, Russia, Japan and France to end the pricing of oil in dollars, according to the Independent, which cites banking sources.

The transition is expected to be complete by 2018, according to Chinese sources. "These plans will change the face of international financial transactions," said one Chinese banker. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate." Analysts say that ending the use of the dollar in oil trading may be fairly straightforward. But replacing it will be a lot trickier, especially if a mix of currencies and gold is to be used, they warn.