MOSCOW: The eight-member countries of the Shanghai Cooperation Organization (SCO), including China, Russia, and Pakistan, have made the principle decision to conduct bilateral trade and investment and issue bonds in local and national currencies instead of US dollars.
As per details, a road map will be finalized and signed at SCO’s Finance Ministers’ meeting in Moscow on March 18th.
Russia, as chairman of the Shanghai Cooperation Organization, has called for suggestions from all member states for trade and investment in local currencies. After a detailed review of these proposals in Moscow’s meeting, a system of mutual settlement of national currencies will be introduced for the member countries of the SCO.
All member states will sign a roadmap for trade and investment in national currencies between member states. Russia has issued the agenda for the SCO’s Finance Ministers’ meeting summoned in Moscow on March 18.
As per reports, the finance ministry of Pakistan has completed preparations in light of the agenda of the conference of finance ministers.
Representatives from the finance ministries and central banks of China, India, Russia, Pakistan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan will attend the SCO conference in Moscow.
In addition, Iran, Afghanistan, Belarus, and Mongolia are the observer countries of the SCO who wish to become a regular member of the organization.
Reports say that if the trade and investment between the member states of the SCO begin in national currencies instead of dollars and pounds, it will be a big breakthrough. It will also strengthen the national currencies of the member countries and promote mutual trade and investment.