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Shanghai Cooperation Organization (SCO) Secretary-General Nurlan Yermekbayev on Thursday ruled out immediate plans for a common payment system within the bloc but stressed efforts to boost national currency transactions in trade.
"We are not now planning to establish common payment systems within SCO, but yes, we are working very actively on increasing the share of national currencies in mutual payment settlement," Yermekbayev said when asked whether there are any plans to establish a common payment system. Delivering the 51st Sapru House Lecture in New Delhi, Yermekbayev, who is on a visit here, highlighted that a special roadmap is in place to advance payments in national currencies. "Experts of member states are working on, first of all, amendments to legislation, making all legislation suitable for national currencies, and on building the infrastructure of such payments in national currencies between all member states," Yermekbayev said. Although the group lacks a common currency, discussions about boosting trade in national currencies have gained momentum due to Western sanctions on Russia over the Ukraine war. The SCO chief also noted that in some cases, countries have already begun using national currencies in trade. The move aligns with the bloc's broader push to enhance financial sovereignty and reduce reliance on external payment systems. Discussion around common currency also going on in BRICS group. However, US President Donald Trump has threatened to impose tariffs on the BRICS group of nations if it were to establish its own currency. Established by Russia and China in 2001, the Shanghai Cooperation Organization is a Eurasian political, economic, international security and defence organization. Initially, the organization included Russia, Kazakhstan, Kyrgyzstan, China, Tajikistan, and Uzbekistan, while in 2017 they were joined by India and Pakistan. Yermekbayev also revealed that negotiations are ongoing to create new financial structures within the SCO framework, including a Development Bank, Development Fund, and Investment Fund. "Systematic work is underway to implement the roadmap of member states for increasing the share of national currencies in mutual settlements," he stated, emphasizing the bloc's focus on economic integration and regional development. On security cooperation, Yermekbayev detailed the SCO's approach to conflict resolution, noting that the organization has established mechanisms for meetings of defence ministers and security council secretaries. He clarified that the military drills conducted under SCO auspices are strictly anti-terrorist exercises aimed at fostering trust among member states and are not directed against any specific country. "These drills are focused on building trust, not aimed against any country," he emphasized. (ANI)
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