The post Russia and China Strengthen Cooperation: Rise of Local Currency Payments in BRICS and SCO appeared on BitcoinEthereumNews.com.

Russia’s Deputy Minister of Economic Development, Dmitry Volvach, recently highlighted a remarkable increase in the use of national currencies among Shanghai Cooperation Organization (SCO) members. The share of national currencies in transactions has surged from 40% in 2022 to an impressive 92% as of now. Volvach emphasized the significant transformation in financial exchanges among member states, indicating a decreasing dependency on the U.S. dollar. This article explores the remarkable rise in national currency usage among SCO countries, the impact on global trade dynamics, and the ongoing collaboration between BRICS and SCO nations. Significant Increase in National Currency Transactions Among SCO Members The recent announcement by Deputy Minister Volvach indicates a paradigm shift in trade practices among SCO member states. Established in 2001, the SCO has evolved into a crucial platform for facilitating multilateral cooperation in political, economic, and cultural domains. With a rise from 40% to 92% in national currency transactions within just a year, this trend signals a strategic move towards insulating member nations from the volatility of the U.S. dollar. Such a dramatic increase may foster enhanced economic stability among members and signify a broader effort to assert monetary sovereignty. The Broader Implications of Currency Diversification The SCO’s shift towards national currencies not only alters how these countries interact financially but also has far-reaching implications for global trade dynamics. By reducing reliance on the dollar, member nations may enhance their bargaining power in international markets. Additionally, this approach aligns with a growing trend among emerging economies seeking to establish a multipolar world order, where power and influence are more evenly distributed. Various credible sources, including economic analyses from the International Monetary Fund, support the notion that diversifying payment methods can lead to increased economic resilience and cooperative trade agreements. Collaboration Between SCO and BRICS In parallel with the…

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Filed under: News - @ September 1, 2024 2:45 am