Saudis, Russians Deny Secret Dollar Move

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The story being denied entitled "The demise of the dollar" is by Robert Fisk in today's (UK) Independent, who refers to "plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong." It claims that, "in a graphic illustration of the new world order, Arab states have launched secret moves with China, Russia and France to stop using the US currency for oil trading."

The Independent also publishes a leading editorial today:
The end of the dollar spells the rise of a new order

Tuesday, 6 October 2009
Last autumn's global financial crisis set off an economic earthquake. And we are still feeling the tremors. The latest sign of the ground shifting beneath our feet is our report today of plans by Gulf states, China, Russia, France and Japan to end their practice of conducting oil deals in US dollars, switching instead to a diverse basket of currencies.

It is not hard to see the motivation for oil exporters to move away from the dollar. The value of the US currency has fallen sharply since last year's meltdown. And fears are growing, in the light of a spiralling US government deficit, that a further depreciation is likely. They do not want to sell their wares in return for a currency with an uncertain future.

Denials

Saudi central bank: report on replacing dollar is wrong
October 6, 2009
Reuters - A newspaper report that Gulf Arab states are in secret talks to replace the U.S. dollar in the trading of oil is wrong, Saudi Arabia's central bank chief said on Tuesday. Asked by reporters about the story in Britain's The Independent, Muhammad al-Jasser said: "Absolutely incorrect." Asked whether Saudi Arabia was in such talks, he replied: "Absolutely not." Asked whether Saudi Arabia was committed to the dollar, he said: "You asked the question, I answered it. You asked about the story."

Russia: hasn't discussed changing dollar role in oil
Tue Oct 6, 2009
Reuters - Russia has not discussed changing the dollar's role in the global trade of oil, deputy Russian finance minister Dmitry Pankin said on Tuesday. "We did not discuss this at all," he told reporters. Pankin was asked by reporters about a story in Britain's The Independent newspaper, which quoted unidentified sources as saying 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 the trading of oil.
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"These plans will change the face of international financial transactions," one Chinese banker said. "America and Britain must be very worried. You will know how worried by the thunder of denials this news will generate." --From Robert Fisk's original story in the Independent