Russia Proposes SCO Bank to Bypass US-Led Financial Systems
· Business · Moneycontrol
Russian President Vladimir Putin has proposed the creation of a dedicated development bank for the Shanghai Cooperation Organisation to facilitate financial transactions independent of Western-controlled systems. The initiative aims to provide a secure mechanism for member nations, including India and China, to conduct trade and investment without the risk of US-led sanctions. The proposal seeks to reduce reliance on the US dollar for cross-border settlements within the bloc. While the plan is intended to strengthen economic cooperation, the report does not specify a timeline for implementation or the formal structure of the proposed institution. Member states have yet to reach a consensus on the operational details of such a financial entity.
Why it matters
The creation of an SCO-backed bank could significantly alter how India and other member nations manage trade and financial exposure, potentially insulating them from US-led sanctions and dollar-based financial pressure.
Read the original report — Moneycontrol
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