Global South nations are increasingly moving trade away from the US dollar to bypass Washington’s policy of economic warfare.
Russian President Vladimir Putin hailed the efforts of Shanghai Cooperation Organization (SCO) member states to settle bilateral trade in their national currencies instead of the US dollar.
“Their share in Russia’s commercial transactions with the members of the organization has already exceeded 92 percent in the first four months of 2024,” Putin said on 4 July during a meeting of the SCO Council of Heads in Astana, Kazakhstan.
He also reiterated Russia’s proposal to create an independent mechanism for settling payments among SCO members.
In his speech, Putin also welcomed the role of the Eurasian bloc in bringing about a multipolar world order.
“Today, as the world goes through rapid and irreversible changes, the SCO’s proactive position in international affairs is much needed. A multipolar world is already a reality,” he pointed out.
“We are convinced that along with BRICS, the Shanghai Cooperation Organization is a pillar of the emerging world order. These two organizations serve as a powerful driving force behind global development processes and efforts to ensure true multipolarity,” Putin added.
The SCO is a Eurasian cooperation bloc created in 2001 by Russia, China, and several former Soviet states in Central Asia. On Thursday, the bloc welcomed Belarus as its latest member state, one year after Iran gained full membership.
Other member states include India, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, and Uzbekistan. Afghanistan and Mongolia are observer countries, while the organization has six dialogue partners: Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka, and Turkiye.
Moscow, Beijing, and Tehran have led efforts in both the SCO and BRICS to move trade away from the greenback to negate the west’s coercive economic sanctions. Member states from the Association of Southeast Asian Nations (ASEAN) have also followed suit.