Payments in national currencies soar to 92% among SCO members

Payments in national currencies among members of the Shanghai Cooperation Organization (SCO) have surged from 40% in 2022 to 92%, reducing dependence on the U.S. dollar.

Russia’s Deputy Minister of Economic Development, Dmitry Volvach, announced this increase at a press conference in Moscow, highlighting a substantial shift in how SCO members conduct financial transactions.

Volvach stated: “In 2022, the share of national currencies in payments between SCO member states amounted to 40% … whereas now it totals 92%.”

The SCO, founded in 2001 in Shanghai, originally included Russia, Kazakhstan, Kyrgyzstan, China, Tajikistan, and Uzbekistan, with India and Pakistan joining in 2017.

Iran became a full member in July 2023 after applying in 2008, and Belarus is on the path to membership, having signed a memorandum at the New Delhi summit in June.

With dialogue partners and observers included, the SCO now comprises 26 countries, actively promoting the use of local currencies to foster economic independence and support a multipolar world order.

The shift mirrors similar efforts by the BRICS bloc, which consists of Brazil, Russia, India, China, and South Africa, along with new members Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.

Both the SCO and BRICS are reducing reliance on the U.S. dollar by encouraging payments in national currencies to strengthen economic ties among member countries.

This week, China and Russia further deepened their cooperation within the BRICS framework, agreeing to use local currencies and enhance payment infrastructures.

Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin met to discuss advancing collaboration in areas like artificial intelligence, sustainable development, and global governance, alongside boosting mutual investments.

The growing use of local currencies in trade and investment among SCO and BRICS members highlights a strategic shift toward building a multipolar global economy, reducing dominance by the U.S. dollar.