China kick-started the Shanghai Cooperation Organization (SCO) summit 2024 in Kazakhstan on Wednesday. The two-day summit will see member countries discuss regional security, trade deals, and ways to strengthen their local currencies. China is leaving no stone unturned and is advancing the de-dollarization agenda at the SCO 2024 summit. The Communist country is holding talks with member nations on how to counter Western institutions and promote an alternative to the US dollar.
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The Xi Jinping administration is pushing the de-dollarization initiative in all summits it conducts, including the ongoing SCO 2024 summit. Its counterpart Russia is also towing the line and initiating talks with member countries to find an alternative to the US dollar. Russia wants trade partners to settle oil payments in the Chinese yuan or the Russian ruble and not the US dollar.
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Read here to know how many sectors in the US will be affected if SCO ditches the dollar for trade. The US pressed sanctions on Russia in 2022 after it invaded and waged war on Ukraine. The sanctions pressed by the White House are what led to the de-dollarization agenda gaining steam and China is advancing the narrative at the SCO 2024 summit.
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SCO 2024 Summit: China & Russia Push For De-Dollarization
SCO was established in 2001 and is the brainchild of China and Russia which has now steered into de-dollarization. The alliance is a nine-member bloc with countries such as China, India, Russia, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Reports suggest that the bloc might invite the Eastern European nation Belarus to join the alliance at the SCO 2024 summit.
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Russia and China are calling the shots at the SCO 2024 summit. The two countries are pushing the idea of using local currencies and educating developing nations about the prospects of de-dollarization. New policies will be charted in the two-day summit.