China-led SCO agrees to expand trade in local currency

The group – which includes China, India, Russia and Pakistan as well as four Central Asian countries – said “interested The SCO member states” have agreed on a “roadmap to gradually increase the share of their currencies in mutual settlements” and have called for the practice to be expanded. did not provide further details, nor did the group say who the “country of interest” was. Moscow is seen as the main driving force behind the development of its own currency as it tries to reduce its reliance on the US dollar and other currencies in response to 2 Western currencies used for trade following the imposition of sweeping new sanctions on the West following the invasion of Ukraine last month.

Last week, Russian gas producer Gazprom (MCX: GAZP

) said that China would pay half of Russia’s gas supply in rubles and half in

RMB . Previous contracts were denominated in euros or dollars, the main reference currency for global oil trade. Leading oil producer Iran, which, like Russia, is subject to widespread international economic and financial sanctions, is also about to join the SCO.