Iran's President Calls for De-Dollarization and Fair International System

Iran's President Calls for De-Dollarization and Fair International System

Iran's President Ebrahim Raisi champions the de-dollarization initiative, emphasizing the removal of the US dollar as a crucial step towards establishing a fair international system. “What forms the basis of the Western dominance system has been the dominance of the dollar,” the Iranian leader said.

President Raisi Pushes for De-Dollarization at the SCO Summit 

In his address at the 23rd virtual summit of the Shanghai Cooperation Organisation (SCO), on Tuesday, President Raisi highlighted the necessity of a more balanced world order where the dominance of the US dollar is replaced. Iran joined the summit as a new permanent member of the SCO, which was hosted by India and chaired by the Indian Prime Minister, Narendra Modi.

The summit was also attended by Xi Jinping, President of China; Vladimir Putin, President of Russia; Kassym-Jomart Tokayev, President of Kazakhstan; Sadyr Japarov, President of Kyrgyzstan; Shahbaz Sharif, Prime Minister of Pakistan; Emomali Rahmon, President of Tajikistan; and Shavkat Mirziyoyev, President of Uzbekistan.

President Raisi highlighted the importance of establishing a fairer world order during his address at the summit, in which the US dollar is no longer the only dominant currency. 

“The Western hegemonic powers, by resorting to economic coercion and sanctions, have jeopardized the security and economic prosperity and the principles of fair trade in the world,” Raisi was quoted in the Tehran Times.

The push for de-dollarization aims to mitigate economic coercion, sanctions, and unfair trade practices imposed by Western hegemonic powers. 

“Relying on the experience of the past decades, it is now quite evident that, along with militarism, what forms the basis of the Western domination system has been the dominance of the dollar,” he explained, adding:

"Therefore, any attempt to shape a fair international system requires the removal of this instrument of dominance in intra-regional relations."

Global Leaders Advocate National Currencies in Trade at the SCO Summit

President Raisi joins other world leaders at the summit, including China's President Xi Jinping and Russia's President Vladimir Putin, in advocating for the use of national currencies in trade settlements. 

“Expanding the use of national currencies in international trade and financial exchanges between the members of this organization and their business partners requires more serious attention,” the Iranian President said.

President Raisi's stance reflects the growing consensus among SCO member countries to promote unity, peace, and mutually beneficial cooperation based on ethics, spirituality, justice, rationality, and respect for human dignity. He opined:

"The Shanghai Cooperation Organisation, which is a symbol of this ‘great family of civilizations,’ is now standing in a position that can establish new horizons of regional convergence and security-building cooperation."

The adoption of modern financial payment instruments and a focus on multilateral frameworks are seen as key facilitators for financial exchanges among member nations and their partners. 

“The Islamic Republic of Iran welcomes any move to introduce financial payment instruments based on modern technologies to facilitate financial exchanges between members and business partners, especially in multilateral frameworks.”

By embracing de-dollarization and pursuing a balanced approach to multilateralism, President Raisi envisions enhanced regional convergence and security-building cooperation within the SCO. 

The statements made by President Raisi resonate with the broader discourse on sovereignty, respect for nations, and the pursuit of the common good through independent joint efforts. 

As Iran's presence in the SCO is solidified with its new permanent membership, the call for de-dollarization gains momentum, while China and Russia reinforce their commitment to national currencies in bilateral trade. 

President Putin of Russia revealed at the summit that more than 80 percent of commercial transactions between Russia and China are carried out in Russian rubles and Chinese yuan.

What is your take on the statements of Iranian President Raisi? Please share your comments.