BRICS, SCO Align on Unified Payment System to Reduce Dollar Reliance

The Shanghai Cooperation Organization (SCO) is advancing talks on a unified payment system to increase national currency use, aligning with BRICS efforts to counter Western economic dominance.

A New Era? SCO’s Talks on Unified Payment System Revealed

Shanghai Cooperation Organization (SCO) Secretary-General Zhang Ming detailed efforts to create a unified payment system among SCO member states on Monday. In an interview with Izvestia, Zhang shared that informal discussions on this initiative are currently underway, with plans to increase the use of national currencies in cross-border transactions. He stated:

The discussion on creating a single payment system is currently in progress in an informal format. At the moment, work is being done to increase the share of national currencies in mutual settlements.

“In 2022, the Samarkand Summit was successfully held, where a concept for increasing this share was adopted … Work in this area is actively progressing,” he shared.

Formed in 2001, the SCO is a regional alliance focused on security, economic collaboration, and political stability among Eurasian countries, including China, Russia, and India. The organization shares objectives with BRICS, as both seek to promote multipolarity and reduce Western economic influence.

To advance the payment system initiative, a specialized working group comprising central banks and finance ministries from each SCO member has been assembled to facilitate necessary economic coordination. Zhang also mentioned the involvement of non-governmental entities in moving the project forward.

“As for non-governmental institutions, our SCO Interbank Consortium is also working on this issue. Of course, this is not an easy task. We are currently facing a number of difficulties, and much more work needs to be done on political coordination,” he explained. Despite the complexities, Zhang expressed confidence in ongoing progress, stating:

I am confident that work in this direction will continue to make progress.

Earlier, Zhang emphasized that enabling a free flow of capital, technology, and services is central to the SCO’s mission of fostering economic cooperation within the alliance.

Meanwhile, the BRICS bloc is pursuing similar goals, exploring a unified payment system to decrease dependency on the U.S. dollar and boost trade in local currencies. During the recent BRICS leaders’ summit, discussions have centered on developing an alternative international payments system and potentially introducing a common digital currency. #Write2Earn