Global financial power dynamics are shifting fast as the Shanghai Cooperation Organization drives a unified move to replace dollar dominance with national currencies in cross-border settlements.
De-Dollarization Momentum Surges With SCO’s Coordinated Financial Reset
A growing number of countries are moving to reduce reliance on the U.S. dollar in cross-border transactions, reflecting a broader global trend toward the use of national currencies in international trade. This movement is gaining momentum among regional blocs, including the Shanghai Cooperation Organization (SCO), where members are actively working to reshape financial frameworks.
Deputy Secretary-General of the SCO Sohail Khan confirmed during an interview with Russian news agency Tass on Sunday that the organization has formalized a common roadmap for settlements in national currencies. Khan stated:
We already have a common roadmap in this area. Experts from the finance ministries and central banks of all countries, especially full members [of the SCO], are working on this issue.
The initiative involves close coordination among financial authorities within the SCO. According to Khan, the roadmap reflects months of collaborative work and analysis aimed at enabling a gradual transition from reliance on traditional reserve currencies.
The Shanghai Cooperation Organization has expanded significantly, now comprising a diverse network of countries across Asia and Eurasia. It currently consists of 9 full members: India, Iran, Kazakhstan, China, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. Additionally, there are 3 observer states—Afghanistan, Belarus, and Mongolia. The organization also maintains ties with 14 dialogue partners, including nations from the Middle East, South Asia, and Southeast Asia.
The SCO’s Deputy Secretary-General further explained that evaluations are ongoing and practical outcomes will be outlined soon. He said:
They will say at the end of this year or in the middle of next year what and how can be done in practice.
The SCO’s efforts come at a time when other multilateral organizations and economic coalitions, including BRICS and ASEAN nations, are actively pursuing similar de-dollarization strategies. These initiatives reflect a broader shift among emerging economies to reduce dependence on the U.S. dollar in trade and financial transactions.
