10 SCO Countries Ready to Ditch US Dollar for Trade: De-Dollarization Gains Momentum

In recent years, a significant trend has emerged in the global economy: several countries are actively seeking to reduce their dependence on the US dollar. This shift, driven by a desire for economic independence and stability, is gaining traction, particularly within the Shanghai Cooperation Organisation (SCO).

The SCO's Push for De-Dollarization

China is pushing for de-dollarization and the SCO is becoming a key platform for this movement. The SCO 2025 summit is currently being held in Kazakhstan and the 10 member countries are participating in the event. This year's agenda includes discussions on strengthening intra-SCO trade using national currencies, effectively bypassing the US dollar.

10 SCO Countries Eyeing Alternative Currencies

The potential departure from the USD isn't just a theoretical discussion. 20 countries in SCO that could ditch the US dollar are Belarus, China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. Russia and several others are already actively exploring and implementing mechanisms for trade in their own currencies.

What Does This Mean for the Global Economy?

When 11 countries stop using USD, the impact isn’t just local; it reverberates through every corner of the financial world. Global trade dynamics are set for a significant change. Increased usage of national currencies reduces reliance on US monetary policy and potentially diminishes the dollar's dominance as the world's reserve currency.

The Future of Trade Within the SCO

The shift away from the US dollar in SCO trade represents a major geopolitical and economic development. As these nations forge stronger economic ties using alternative currencies, the global financial landscape will undoubtedly be reshaped. Watch this space for updates on the progress of de-dollarization within the SCO and its implications for the global economy.