The Independent article is already getting pushback. There are some dubious parts to it which is why I put the qualifier, "assuming the article from the Independent is legitimate" in my last post. Sometimes it doesn't matter as the dollar is down, gold has set all time highs, and stocks are flying (because the dollar is down).
Either way a couple of counter articles. Reuters has an article saying the Arab states are denying the reports (if it was true they would still deny the reports.
Mish writes a post on his blog why the hype over the article is ridiculous.
If the article is indeed legitimate, I disagree with Mish. It seems to me that currency value is set by supply and demand over the long term and if all of a sudden a big economic market no longer uses a currency the demand for that currency drops considerably.
Now the article may be overhyped, won't argue there. If it is true, it isn't irrelevant.