10 SCO Countries Agree to Dedollarization, Using US Dollar Too Risky

JAKARTA – SCO as Shanghai Cooperation Organization, has recently attracted attention because of its perspective on international trade currency. The group has 10 member countries including major countries such as China, Russia, and India. Therefore, every decision taken by SCO will affect the global economy.

Recently, the SCO held a summit in Astana, Kazakhstan, and they stated that the continued use of the US dollar in international trade transactions is a matter of concern. All members agreed on the direction of dedollarization to reduce risks to the US dollar.

Russian Deputy Prime Minister Alexei Overchuk said, “Almost all speakers noted the need to increase the share of local currencies in mutual settlements.”

The above statement shows the growing concern of SCO countries about the potential risks arising from over-reliance on the US dollar. Quoted from Watcher Guru, Overchuk said, “Everyone understands that the use of the dollar is risky from the point of view of international settlements.”

These statements may be the first steps in how SCO members deal with international trade. The reasons for concerns about the US dollar range from the stability of international transactions; requirements for national currencies to US sanctions and controls.

For your information, this year’s summit also hosted the first SCO+ meeting with a focus on “Strengthening Multilateral Dialogue – pursuing peace and sustainable development” This action can create more ways to discuss and address these issues.

(nng)