“Ditch dollar” report sends gold galloping

London: The British newspaper The Independent has set out a report that "secret meetings" have been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on a scheme to stop using US dollars for oil trading. The report says Gulf Arab states are the sponsors of the scheme. (See: China in plot with US allies to topple dollar in oil trades: report)

The report by veteran MidEast correspondent, the Beirut-based Robert Fisk, also alleges that France too was part of the talks.

"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 paper said.

According to Fisk, these states will ditch the dollar within nine years and move instead to a basket of currencies include the Japanese yen, Chinese yuan, the euro, gold and a new unified currency for key Arab Gulf states, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Fisk claims the plans were confirmed to his paper by both Gulf Arab and Chinese banking sources in Hong Kong. He also suggests that the Americans are aware that these meetings have taken place, but are yet to discover the details.

"These plans will change the face of international financial transactions," a Chinese banker told the paper. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate."