SCO Chief pushes for national currency trade, no common payment system yet
SCO Secretary-General Nurlan Yermekbayev Discusses National Currency Trade and Security Cooperation
In New Delhi, Nurlan Yermekbayev, the Secretary-General of the Shanghai Cooperation Organization (SCO), announced that there are no immediate plans for a common payment system within the SCO. However, efforts are underway to increase the use of national currencies in trade among member countries. Yermekbayev highlighted a roadmap to facilitate payments in national currencies, with experts working on legislative amendments and infrastructure development.
These discussions have gained importance due to Western sanctions on Russia. Some countries have already started using national currencies in trade, aligning with the SCO's goal to enhance financial sovereignty. The idea of a common currency is also being discussed in the BRICS group, although US President Donald Trump has threatened tariffs if such a currency is established.
The SCO, founded by Russia and China in 2001, includes several Eurasian countries, with India and Pakistan joining in 2017. Yermekbayev mentioned ongoing negotiations to create financial structures like a Development Bank and Investment Fund within the SCO. He emphasized the organization's focus on economic integration and regional development.
On security, Yermekbayev explained the SCO's conflict resolution mechanisms and clarified that military drills are anti-terrorist exercises to build trust among members, not targeting any specific country.
Doubts Revealed
SCO
SCO stands for Shanghai Cooperation Organization. It is a group of countries that work together on issues like security, trade, and cultural exchange. India is a member of this group.
Secretary-General
A Secretary-General is like the head or leader of an organization. Nurlan Yermekbayev is the current Secretary-General of the SCO.
National Currency Trade
National currency trade means using a country's own money for buying and selling goods with other countries, instead of using a common currency like the US dollar.
Western sanctions on Russia
Sanctions are penalties or restrictions put by countries to punish or influence another country. Western countries have put sanctions on Russia, which affects its trade and economy.
Development Bank
A Development Bank is a special bank that provides money for projects that help improve a country's economy, like building roads or schools.
Anti-terrorist drills
Anti-terrorist drills are practice exercises that help countries prepare to stop or respond to terrorist attacks. They help build trust and cooperation among countries.
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