Bad news for the US dollar as China, Russia and Pakistan to trade in local currencies
It will also strengthen the national currencies of the member countries and promote bilateral trade and investment.
The member countries of the Shanghai Cooperation Organization (SCO), including Pakistan, China, and Russia have decided to conduct mutual trade and investment in local and national currencies instead of conducting transactions with the US dollar.
According to details, the agreement was finalized and signed at the SCO’s Finance Ministers’ meeting in Moscow on the 18th of March 2020.
Russia, as chairman of the Organization, called for recommendations from all member countries for trade and investment in national currencies. After a thorough review of these suggestions, a system of mutual settlement of local currencies will be announced for the member states of the SCO.
All member countries had signed a road-map for trade and investment in local currencies between member states on March 18th..
Officials from the central banks and finance ministries of Pakistan, China, Russia, Uzbekistan, India, Tajikistan and Kyrgyzstan also attended the SCO conference in Moscow.
Moreover, Afghanistan, Belarus, Iran and Mongolia are the observer members of the SCO.
According to reports, if the trade and investment between the member states of the SCO begin in local currencies instead of dollars and pounds, it will be a significant breakthrough. It will also strengthen the national currencies of the member countries and promote bilateral trade and investment.
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