Last week, I did a blog entry looking at how the US dollar was set to lose its reserve currency status.

There is no doubt the US dollar is struggling as investors buy into gold pushing up its price to as more than $1018.

And now there are signs the dollar could go even lower with The Independent's Robert Fisk reports that Arab states, combined with with China, Russia, Japan and France, are planning to end dollar dealings for oil. The game plan is to instead adopt a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar. Fisk reports that secret meetings between the government are already under way. And the global implications are immense.

Fisk reports: "The Americans, who are aware the meetings have taken place - although they have not discovered the details - are sure to fight this international cabal which will include hitherto loyal allies Japan and the Gulf Arabs. Against the background to these currency meetings, Sun Bigan, China's former special envoy to the Middle East, has warned there is a risk of deepening divisions between China and the US over influence and oil in the Middle East. "Bilateral quarrels and clashes are unavoidable," he told the Asia and Africa Review. "We cannot lower vigilance against hostility in the Middle East over energy interests and security."

The fight over oil reserves will become more intense. And the dollar is likely to continue its slide.