London, Oct 6 (IANS) Gulf countries have begun secret talks with China, France, Japan and Russia to replace dollar dealings for oil with a basket of currencies, a newspaper reported Tuesday.
The basket includes the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for members of the Gulf Cooperation Council (GCC), The Independent reported.

The paper said India was interested in the proposal.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, the paper said quoting unnamed Gulf and Chinese banking sources.

“These plans will change the face of international financial transactions,” one Chinese banker said.

The paper quoted Chinese banking sources as saying gold may well be the transitional currency in the move away from the dollar.

An indication of the huge amounts involved can be gained from the wealth of Abu Dhabi, Saudi Arabia, Kuwait and Qatar who together hold an estimated $2.1 trillion in dollar reserves.

Brazil and India have also shown interest in collaborating in non-dollar oil payments. However, China appeared to be the most enthusiastic of all the financial powers involved, the paper said

“The Russians will eventually bring in the rouble to the basket of currencies,” a prominent Hong Kong broker told The Independent.

“The Brits are stuck in the middle and will come into the euro. They have no choice because they won’t be able to use the US dollar.”