Russian Foreign Minister Pushes to Use National Currencies in SCO

Russian Foreign Minister Pushes to Use National Currencies in SCO

Russian Foreign Minister Sergey Lavrov has been convincing countries of the need to use national currencies more than ever before in the Shanghai Cooperation Organisation (SCO) Foreign Ministers Meeting in Panaji, Goa, India, and believes the transition cannot be stopped. Lavrov also discussed a similar initiative within the BRICS bloc of nations.

SCO Countries Likely to Switch to National Currencies

There seems to be an emerging understanding about increasing the use of national currencies in cross-border settlements between the member states of the SCO. The Minister of Foreign Affairs, Russia, Sergey Lavrov said after discussing with SCO foreign ministers in Panaji, the capital of Goa, in India.

Lavrov believes member nations can follow similar practices of the Eurasian Development Bank, the Asian Bank for Reconstruction and Development, and the New Development Bank established by the BRICS bloc.

"All this was discussed. All of this is very relevant. All this is now being considered by the relevant departments, ministries of finance, and central banks," Lavrov was quoted by the Tass news agency. He emphasized:

"This work is underway, and, in general, it cannot be stopped." 

Creation of an Aggregated Currency

The Russian Minister for Foreign Affairs was also reminded about the proposal forwarded by the President of Brazil, Luiz Inacio Lula da Silva, on the transition of payments in national currencies in the BRICS (Brazil, Russia, India, China, and South Africa) group of nations.

The issue has also been discussed at the SCO meeting, including the creation of "some kind of aggregated currency," which cannot be ruled out either.

"The main thing now is to consider practical issues that will make it possible to protect the cooperation of independent states," he said, accusing the West of abusing its position in the global economy and the reserve currency status of the US dollar and the euro.

The SCO, the world’s largest regional organization that unites China, Russia, India, Pakistan, and several Central Asian nations, is preparing to drop the dollar in favor of settlements in the national currencies among the member nations, revealed its Deputy Secretary General Grigory Logvinov in a recent interview.

Lavrov said that despite the serious intentions to move away from the US dollar, the member nations have not considered the introduction of a common currency. BRICS, the world’s largest bloc by gross domestic product (GDP), also intends to initially promote the use of its national currencies.

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