Global Economy News

Putin: Shanghai has increased the speed of dollarization

According to Tasnim news agency, citing Rashatudi, Russian President Vladimir Putin emphasized on Thursday at the summit of the Shanghai Cooperation Organization in Astana, the capital of Kazakhstan, that the members of this organization have increased the speed of dollarization because national currencies are used in international settlement. they do.

Founded in 2001, the Shanghai Cooperation Organization is an economic and security bloc that includes most of the Eurasian countries and accounts for more than 20 percent of global GDP. This organization includes Iran, India, Kazakhstan, China, Kyrgyzstan, Russia, Pakistan, Tajikistan, Uzbekistan and now Belarus.

Currently, 14 countries, including Egypt, as the only African country, have the status of “discussion partner” in the Shanghai Cooperation Organization and are allowed to participate in specialized events at the invitation of members of the organization.

During his speech at the meeting of the Council of Heads of States, Putin noted that the members of the Shanghai Cooperation Organization have increased the use of national currencies in the settlement of mutual accounts.

He said: For example, the share of national currencies in Russia's business transactions with the members of this organization has exceeded 92% in the first four months of this year.

Putin also reiterated Russia's proposal to create an independent mechanism to settle payments in the Shanghai Cooperation Organization, adding that meetings between finance ministers and central bank governors would help strengthen trade and investment ties in the organization.

The global trend to use national currencies in trade instead of the US dollar gained significant momentum after Russia's disconnection from the Western financial system and the freezing of its foreign reserves in 2022.

Elvira Nabiullina, head of Russia's central bank, also recently noted that after many Russian banks were cut off from access to the SWIFT financial messaging system due to Western sanctions, many countries became skeptical about the financial system.

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Mhd Narayan

Bringing over 8 years of expertise in digital marketing, I serve as a news editor dedicated to delivering compelling and informative content. As a seasoned content creator, my goal is to produce engaging news articles that resonate with diverse audiences.

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