Russia has sought proposals from member countries of the SCO to trade and invest in local currencies. Photo, Internet
Islamabad: The eight member countries of the Shanghai Cooperation Organization (SEO), including China, Russia, and Pakistan, have made a principled decision to issue bilateral trade and investment and bonds in local currencies rather than dollars and pounds.
A road map will be finalized and signed at the SCO Finance Minister's meeting held in Moscow on March 18.
Russia as chairman of the Shanghai Cooperation Organization (SCO) has called for suggestions from all member countries for trade and investment in local currencies. Following a detailed review of these proposals in Moscow, a system of mutual settlement of national currencies will be introduced for the member countries of the SCO. The members of the member countries will decide on trade and investment in national currencies. Roadmap will be signed by all member states.
Russia has issued the agenda for the summit of the Shanghai Cooperation Organization ministers summoned in Moscow on March 18. According to sources, Pakistan's Ministry of Finance has completed preparations in light of the finance ministers' conference agenda.
Representatives from China, India, Russia, Pakistan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan's ministers, finance and central banks will attend the Shanghai Cooperation Organization conference in Moscow on March 18. Also, Iran, Afghanistan , Belarus and Mongolia are the observer countries of the SCO who wish to become a regular member of the organization. In addition, Armenia, Turkey, Sri Lanka, Nepal, Cambodia and Azerbaijan are the Dialogue Partners of the SCO.
Sources say that if trade and investment between the member states of the SCO starts in national currencies instead of dollars and pounds, it will be a major breakthrough. It will also strengthen the national currencies of the member countries and promote mutual trade and investment.
Russia will preside over the Shanghai Cooperation Organization meeting beginning March 18, according to documents available to the Express. At the meeting of the Finance Ministers of the Rukin Countries, Deputy Secretary of the Russian Federation SA Storchak (AS Storchak) in his opening remarks will inform the participants about the benefits and limitations of transfer of trade and investment in local and national currencies. The Secretary General of the organization will present the position of SCO at the meeting.
In addition, ET Gruvich, head of the group of economists and acting AA Melnikov (AA Melnikov), acting director of the Bank of Russia's Department of International Cooperation, represents and trade in local currencies. Answer the questions related to
The Director of the Russian Ministry of Finance's Department of Fiscal Policy Iv Purskina (I.V Pursekina) will conduct detailed discussions regarding the settlement of national currencies among the member states of the SCO.
The document also discusses the mechanism for transfer and mutual settlement in national currencies and the introduction of new payment systems, the document added. The possibility of intermittent interaction between Member States for national payment card systems and their promotion will also be considered.
According to the details available, the use of the SWIFT Independent Financial Message Channel (SWIFT Independent Financial Message Channel) will also be discussed among the major banks of the Shanghai Cooperation Organization (SCO) countries. The proposal to issue bonds in member states' national currencies will also be considered.
The document also states that the mechanism of direct trade in national currencies between the member countries of the SCO will also be devised. Likewise, proposals for investment assistance, trade financing and development support in local currencies are also under consideration. Transactions in national currencies will be encouraged by national banking regulators and policy levels will be intervened by member countries to increase the use of national currencies in external economic activities.
It is further stated that the National Currency Legislation will be liberated to eliminate the need for return of export earnings. The conference's final statement will be released June 22 at a meeting in St. Petersburg.