By Rhod Mackenzie
According to Iranian Deputy Foreign Minister for Economic Diplomacy Mehdi Safari, the Shanghai Cooperation Organization (SCO) should adopt the practice of de-dollarization and trade in national currencies.
"Dedollarization" refers to the use of national currencies for trade transactions, which has become more prevalent since the adoption of a single currency in the BRICS. According to Safari, this practice should also be adopted by the SCO.
The deputy head of the Iranian Foreign Ministry stated that trading in national currencies with Russia, Kazakhstan, and other countries could form a solid foundation for swap trading. He emphasized that swap trading is essentially dedollarization. Another way to implement the idea of de-dollarization, according to him, could be the creation of a fund of different currencies by the New Development Bank (NDB) of BRICS, in which a single currency would be adopted. Safari believes that it will be possible to obtain a loan from the bank and conduct trading operations based on this.
Regarding the role of the NDB, the speaker emphasized that BRICS will regulate a large economy in which this bank can play a significant role, similar to the Bank of the Organization of Islamic Cooperation formed between Islamic countries.
During the BRICS summit in South Africa in August 2023, President Cyril Ramaphosa announced that the organization's members had decided to invite Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE to become full BRICS members. However, Argentina declined the invitation. The full participation of these new countries in the organization began on January 1, 2024. According to Sergei Ryabkov, the Deputy Head of the Russian Foreign Ministry, a state seeking BRICS membership should refrain from imposing sanctions on other member countries.