10 SCO countries ready to abandon US dollar for trade

The SCO Summit 2024 is currently being held in Kazakhstan and all 10 member countries are participating in the event. China is pushing for de-dollarization and is trying its best to convince other SCO countries to abandon the US dollar for trade. The communist nation wants other developing countries to use local currencies for cross-border transactions and not the US dollar. Read here to know how many sectors in the US will be affected if the SCO abandons the dollar for trade.

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The SCO stands for the Shanghai Cooperation Organization and was established in 2001. Belarus, an Eastern European country, joined the SCO in July 2024 and is now part of the group. Belarus was sanctioned by the European Union and therefore joined the SCO to protect its economy and promote local currencies and not the US dollar.

Read also : China advances de-dollarization agenda at 2024 SCO summit

SCO Summit 2024: 10 countries plan to trade in local currency, not US dollar

China is serious about its de-dollarization agenda and discusses its prospects at every summit it attends. If China can convince the SCO to abandon the US dollar, ten countries will follow suit and use their local currencies. The ten SCO countries that could abandon the US dollar are Belarus, China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. Russia and China have already started the process of de-dollarization.

Read also : SCO Summit: India does not want to replace US dollar with Chinese yuan

India, however, may be the only exception in the SCO, as it may not accept China’s demands. India wants to trade in US dollars and reduce the number of payments in Chinese yuan for trade. The Modi government has already stopped buying Russian oil at discounted prices because Russia demanded payment in Chinese yuan. India has been buying US oil instead of paying in dollars because it believes China is using alliances to advance its global agenda against the US dollar.