SCO members weigh pros and cons of unified currency, talks ongoing

The idea of creating a unified currency for the Shanghai Cooperation Organisation (SCO) is still under active discussion, according to the organization’s Secretary General, Nurlan Yermekbayev, speaking on January 3.

While SCO payment systems are currently integrated with other global currencies, Yermekbayev emphasized that there is growing consensus on the need to increase the use of national currencies, Caliber.Az reports via Russian media.

Experts have proposed the idea of a shared currency or an SCO-specific unit of account. However, this initiative remains at the discussion stage for now.

Yermekbayev also noted that the payment systems of SCO countries are still closely tied to other foreign currencies, a situation that continues to influence the pace and direction of any potential currency development within the organization.

The remarks follow previous statements from Shaktikanta Das, the Governor of the Central Bank of India, who mentioned that India has not yet decided on the creation of a single BRICS currency.

Earlier, US President-elect Donald Trump threatened to impose 100% duties on BRICS nations if they pursued a unified currency, a move that was dismissed as "meaningless" by Brazil.

In July, the SCO's Deputy Secretary-General, Janesh Kane, revealed that the organization was considering the possibility of a unified payment system based on national currencies. In October, former Secretary-General Zhang Ming confirmed that the topic was being discussed informally. Zhang also noted that economic integration among SCO member states was progressing.

Further solidifying the organization’s growing importance, UN Secretary-General António Guterres highlighted the SCO's role in regional stability and security. He reiterated that the SCO’s original goal of coordinating responses to common threats remains central, but the organization is also looking to expand economic integration and multifaceted cooperation.

Founded on June 15, 2001, the SCO includes members such as Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, Pakistan, India, Iran, and Belarus.

By Tamilla Hasanova