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National currency usage in SCO unstoppable, says Russia’s Foreign Minister

TL;DR

  • Russian Foreign Minister Sergey Lavrov asserts that efforts to shift to national currencies in the Shanghai Cooperation Organization (SCO) cannot be stopped.
  • Lavrov suggests that participants could adopt practices from the Eurasian Development Bank, the Asian Bank for Reconstruction and Development, and the BRICS bloc’s New Development Bank to achieve the transition.

According to Russian Foreign Minister Sergey Lavrov, efforts to transition to national currency trade in the Shanghai Cooperation Organization (SCO) are unstoppable. The top diplomat from Moscow also discussed a similar initiative within the BRICS group during a meeting in India.

Lavrov: Adoption of international banking practices for national currency use

In a conference with counterparts in Panaji, India, Russian Minister of Foreign Affairs Sergey Lavrov stated that there is a mutual understanding among SCO member states regarding increased national currency use in settlements. He suggested adopting practices being developed in the Eurasian Development Bank, the Asian Bank for Reconstruction and Development, and the New Development Bank established by the BRICS bloc.

Lavrov highlighted that the initiative was discussed, is highly relevant, and is currently under consideration by relevant departments, ministries of finance, and central banks. He emphasized that the work is in progress and unstoppable.

BRICS president’s proposal on national currency payments

Lavrov also recalled the proposal by Brazil’s President Luiz Inacio Lula da Silva for a transition to national currency payments within the BRICS group. The SCO meeting included discussions on creating an “aggregated currency,” which Lavrov believes should not be ruled out.

The Russian diplomat stressed the importance of addressing practical issues to safeguard the cooperation of independent states. He accused the West of misusing its position in the global economy and the reserve currency status of the U.S. dollar and the euro.

In a recent interview, Grigory Logvinov, SCO Deputy Secretary General, disclosed that the organization, which unites China, Russia, India, Pakistan, and several Central Asian nations, plans to replace the dollar with settlements in the national currencies of members. Lavrov noted, however, that a common currency is not yet under consideration. BRICS, the world’s largest bloc by GDP, also aims to initially promote the use of its national currencies.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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