Russia, China and Japan fleeing the dollar

British newspaper The Independent published an article on its front page devoted to „the end of the dollar as a means of payment in oil trading. Newspaper correspondent in the Middle East Robert Fisk writes that have led secret negotiations between the Gulf and China, Russia, Japan and France to stop using the dollar as the current unit in the oil trade and its replacement by a currency basket, including Japanese yen, Chinese yuan, the euro, gold and the new single currency of the nations of the Cooperation Council for the Gulf, which includes Saudi Arabia, United Arab Emirates, Kuwait and Qatar.

According to The Independent have already held secret meetings between finance ministers and governors of central banks of Russia, China, Japan and Brazil to develop the new payment scheme. Greatest enthusiasm for this initiative shows China, not least because of its huge volume of trade with the Middle East, the paper notes. In connection with this publication warns of the danger of „future economic war between China and the United States for the Middle East oil. According to Chinese sources of funding, President Barack Obama is currently too busy to improve the U.S. economy to pay during such a transition from dollars to the currency basket, which currently is planned to happen by 2018, notes the newspaper.

At the end of last month, Iran announced that its reserves in foreign currency will continue to be in euros rather than dollars. Bankers naturally remembered what happened last Middle Eastern oil producer who decides to sell oil in oil in euros instead of dollars. A few months after Saddam Hussein announced its decision the Americans and the British occupied Iraq, notes The Independent.

––––––––––––––––– ––––––––––

Finance