The rumors started by a British newspaper were dissipated after a group of Oil producing countries were not replacing the US Dollar with a basket of currencies. This would have put a major dent in the current state of the dollar as a reserve currency. All commodities are priced in us dollars and the price of the currency directly affects their value. Saudi Arabia and Russia denied outright that there were such talks taking place.
Big oil producing nations denied a British newspaper report on Tuesday that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the U.S. dollar with a basket of currencies in trading oil.
The dollar eased in response to the report, which was written by The Independent’s Middle East correspondent Robert Fisk and cited unidentified sources in Gulf Arab states and Chinese banking sources in Hong Kong.
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