TEHRAN – Iran’s ambassador to Russia said the country’s proposal to establish a joint bank for Shanghai Cooperation Organization (SCO) members marks a significant step toward de-dollarization and a shift toward a multipolar world order.

Kazem Jalali told IRNA on Thursday that the initiative, presented during a meeting of SCO central bank governors in Beijing, would benefit both the governments and peoples of member states by coordinating monetary and economic policies.

Jalali described the growing use of national currencies or alternatives to the US dollar in trade among SCO countries as an effective tool in reducing dollar dominance in the global economy.

He also noted that the creation of a common market among SCO members would help expand trade within the bloc and serve their shared interests.

Calling the SCO a key player in global affairs, Jalali said the recent central bank governors' meeting in Beijing showed the group is transitioning from symbolic declarations to practical steps aimed at enhancing economic cooperation.

He emphasized that the SCO is at a critical point in its development, with the challenge of balancing relationships with both the United States and the European Union—relationships characterized by a mix of cooperation and competition.

Jalali said the bloc’s ability to align the interests of major powers like China, Russia, and India is now more crucial than ever.

The Iranian diplomat acknowledged past criticism that the SCO had been limited to issuing symbolic statements, but argued that the Beijing meeting signaled the group’s growing ambition to function more like ASEAN or the European Union in terms of economic cooperation.

He stressed that SCO members share common interests due to their vast geographic reach and collective opposition to Western monopolies. As the global power balance shifts, he said, the bloc is well-positioned to expand its influence across Eurasia and the world.

Jalali also highlighted the importance of expanding trade through bilateral and multilateral consultations and called for stronger digital connectivity among national economies. He said deeper cooperation in transportation and transit infrastructure could unlock the full potential of the organization’s member states.

Referring to Iran’s SCO engagement, Jalali noted that Tehran first joined the bloc as an observer in 2005 and became a full member in July 2023. He said the organization plays an important role in Iran’s regional diplomacy.

The Shanghai Cooperation Organization is an intergovernmental body founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. It aims to promote cooperation, peace, and the creation of a more democratic and equitable international political and economic order.

Current SCO members include Iran, Russia, China, India, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Uzbekistan, and Belarus.

EF/MA