Payments in national currencies among Shanghai Cooperation Organization (SCO) members have surged to 92% in 2024, up from 40% in 2022.
This significant increase marks a notable shift away from the U.S. dollar in financial transactions among SCO nations.
Russia’s Deputy Minister of Economic Development, Dmitry Volvach, highlighted the change during a recent press conference in Moscow.
He stated that the proportion of payments made in national currencies has grown dramatically over the past year.
The SCO, established in 2001, originally included Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.
India and Pakistan joined in 2017, and Iran became a full member in July 2023.
Belarus is in the process of becoming a member following a memorandum signed in June 2024.
With the addition of dialogue partners and observers, the SCO now comprises 26 countries.
The SCO's move aligns with similar efforts by the BRICS bloc, which includes Brazil, Russia, India, China, and South Africa, along with new members Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.
Moreover, both organizations are advocating for increased use of local currencies to decrease dependence on the U.S. dollar in international trade.
In recent developments, China and Russia have deepened their financial cooperation under the BRICS framework.
Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin have agreed to enhance the use of local currencies, improve payment infrastructure, and increase mutual investments.
Their collaboration extends to areas such as artificial intelligence, sustainable development, and global governance, further advancing the SCO and BRICS goals.