The eight-member countries of the Shanghai Cooperation Organization (SCO), including China, Russia, and India, have made the decision to conduct bilateral trade and investment and issue bonds in local and national currencies instead of US dollars. Details, a road map will be finalized and signed at SCO’s Finance Ministers’ meeting in Moscow tomorrow. Russia is the current Chairman of the SCO.
Russia has called for suggestions from all member states for trade and investment in local currencies. After a detailed review of these proposals at Moscow’s meeting, a system of mutual settlement of national currencies is expected to be introduced for the member countries of the SCO.
All member states will sign a roadmap for trade and investment in national currencies between member states. It is understood that the finance ministers of all member countries have completed preparations in light of the agenda of the conference of finance ministers.
Representatives from the finance ministries and central banks of China, India, Russia, Pakistan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan will attend the SCO conference in Moscow. In addition, Iran, Afghanistan, Belarus, and Mongolia are observer nations and will also be present.
Reports say that if the trade and investment between the member states of the SCO begin in national currencies instead of dollars and pounds, it will increase trade, strengthen the national currencies of the member countries and promote mutual trade and investment.
The SCO is the largest regional organisation in the world in terms of geographical coverage and population, covering three-fifths of the Eurasian continent and nearly half of the human population. Related Reading
BRICS Bank To Move Away From US Dollar Loans
Major Belt and Road Nations Increasingly Looking at Avoiding the US Dollar