China, Russia, Pakistan decide to trade in local currencies instead of dollars
Islamabad … News Time
The 8 member countries of the Shanghai Cooperation Organization (SEO), including China, Russia and Pakistan, have made the principle decision to issue bilateral trade and investment and bonds in local and national currencies instead of dollars and pounds.
In this regard, a road map will be finalized and signed at the SCO Finance Minister’s meeting held in Moscow on March 18. Russia, as Chairman Shanghai Cooperation Organization (SCO), has requested proposals from all member states to trade and invest in local currencies. After a detailed review of these proposals at a meeting in Moscow, the national currency mutual settlement system for SCO member countries will be introduced. All Member States will sign a roadmap between the Member States for trade and investment in national currencies.
Russia has issued the agenda for the March 18 meeting of the Finance Ministers of the Shanghai Cooperation Organization (SCO) called for in Moscow. According to sources, the finance ministry of Pakistan has completed preparations in light of the agenda of the conference of finance ministers. Representatives from the Ministers of Finance, Ministry of Finance and Central Banks from China, India, Russia, Pakistan, Kyrgyzstan, Tajikistan, and Uzbekistan will attend the SCO conference in Moscow. In addition, Iran, Afghanistan, Belarus and Mongolia are SCO observer countries who want regular membership of the organization. In addition, Armenia, Turkey, Sri Lanka, Nepal, Cambodia and Azerbaijan are the Dialogue Partners of the SCO.
Sources say it would be a big boost if trade and investment between the SCO member countries starts at national currencies instead of dollars and pounds. It will also strengthen the national currencies of the member countries and promote mutual trade and investment. The Shanghai Cooperation Organization, which begins March 18, will preside over the meeting. At the inaugural meeting of the Member States, Member of the Russian Federation Deputy Minister of Finance AS Storchak in his opening remarks will inform the participants about the benefits and limitations of transfer of trade and investment in local and national currencies. The secretary general of the organization will present the position of SCO in the meeting.
In addition, ET Gruvich, head of the group of economists and acting director of the Bank of Russia’s Department of International Cooperation, AA Melnikov, delegates member countries to trade and invest in local currencies. Answer the questions related to the Director of the Russian Ministry of Finance’s Department of Fiscal Policy Iv Purskina (I.V Pursekina) will discuss detailed settlement of national currencies between SCO member states. The document also discusses the mechanism for transfer of mutual settlement and the introduction of new payment systems in national currencies of trade and investment and the introduction of new payment systems. The possibility of inter-system interconnection between Member States for national payment card systems and their promotion will also be considered.
According to the details available, the use of the SWIFT Independent Financial Message Channel (SWIFT Independent Financial Message Channel) will also be discussed among the major banks of the SCO member countries. The proposal to issue bonds in member states’ national currencies will also be considered. The document further said that the mechanism of direct trade in national currencies between Member States of the SCO would also be devised. Likewise, proposals for investment assistance, trade financing and development support in local currencies are also under consideration. Transactions in national currencies will be encouraged by national banking regulators and policy levels will be intervened by member countries to increase the use of national currencies in external economic activities. It is further stated that the National Currency Legislation will be liberated to eliminate the need for return of export earnings. The conference’s final statement will be released June 22 at a two-day meeting in St. Petersburg.
