Klepach: mutual settlements in national currencies will allow SCO countries to withdraw from the dollar zone« Back
Own multicurrency model and mutual settlements in national currencies will allow the countries of the Shanghai Cooperation Organization (SCO) to move away from working with the dollar and open new opportunities for market participants. This opinion was voiced by the Deputy Chairman of Vneshekonombank Andrey Klepach at the Second Eurasian Integration Sochi Forum.
"We see how the issue of finance, dollar calculations becomes extremely acute and toxic, and this is an important incentive for the SCO countries, which account for more than half of the world's gold and foreign exchange reserves and a significant part of the financial flows, ... new joint financial model began to be developed. We have a great potential for cooperation in settlements in national currencies, <...> it really could be an alternative multi-currency model that would give a very serious impulse to mutual investment, and would remove those risks that arise with the dollar", he said at the plenary session.
Klepach explained to TASS that when implementing such a model, trade in national currencies could expand. The mechanism can also be used when attracting investors, creating "some analogue of a basket of currencies from the same yuan, rupee, ruble, which will really work effectively".
"There is a mechanism that central banks, for example, our central bank and the Bank of China can use, they have an agreement on currency swaps, but it practically does not work and does not hedge private business transactions. <...> There is a currency pool within the BRICS, which is also not used, and this could give a very serious impetus for not only trading in national currencies, but for borrowing. When we borrow, <...> the question of exchange rate differences arises, and that these currencies become more reliable and stable, the participation of central banks is necessary " , - he added.
The interlocutor added that another factor in favor of the multi-currency system is American sanctions. For those companies that fell under them, work with the dollar is almost impossible, and, therefore, one needs to look for an alternative.
The declaration on the establishment of the SCO was signed in Shanghai in June 2001 by six countries - Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Six observer countries (Mongolia, India, Iran, Pakistan, Afghanistan and Belarus) and six dialogue partners (Sri Lanka, Turkey, Azerbaijan, Armenia, Cambodia and Nepal) also participate in the work of the association.