Russia proposes that SCO members no longer use the dollar in bi-lateral trade which would affect 40% of the global economy

7:46 AM bi-lateral trade, de-dollarization, dollar, dollar hegemony, economic sanctions, economic warfare, reserve currency, russia, sco, trade 3 Comments

As de-dollarization continues to accelerate across the globe, Russia on Oct. 15 suggested to member nations of the Shanghai Cooperation Organization (SCO) that they as a whole divest their need to use the recognized reserve currency and instead start conducting trade with each other in their own currencies.

Speaking at the SCO Council Meeting being held in Tajikistan this week, Russian Prime Minister Dmitri Medvedev sought to inject the Eurasian power's view that the world no longer needs to rely upon a uni-polar reserve currency in conducting bi-lateral trade with one another, and that continued reliance on the dollar means that nation's would continue to be bound to the whims of the U.S. any time they desired to inflict economic warfare on their economies through sanctions or tariffs.

Transitioning to mutual settlements in national currencies could open prospects for countries of the Shanghai Cooperation Organization (SCO), according to Russian Prime Minister Dmitry Medvedev. 

Talking at the SCO council meeting in Tajikistan, the PM said there’s need in such a step and the Russian government supports the idea. He, however, noted that “it is necessary to act carefully.” 

According to Medvedev, “The external conditions we are working are still difficult and can hardly be called comfortable. The system of strategic stability faces serious challenges.” 

He stressed that “some states use unfair competition, introducing protectionist measures, illegal unilateral sanctions” in order “to maintain their dominant positions.”Medvedev explained that such attacks are mainly directed against Russia and China as key members of the SCO, as well as their partner Iran. – Russia Today

At this time in history, the U.S. has imposed economic sanctions on over 10% of global economies and has been seeking to restrict the sovereign power of European nations in choosing to trade with Iran ever since President Trump took office.  Additionally, sanctions imposed upon Russia by Washington going back to 2013 have taken their toll on most of the EU as countries have been forced to abdicate hundreds of billion of euros in lost trade over the Ukraine question and Russia's re-consolidation of the Crimea.

Up until this decade, nearly all global sanctions imposed on nations were addressed by the United Nations in a joint partnership, rather than unilaterally by a single nation.  And it is this change that began with the Obama administration and has since carried over to President Trump as well, that has accelerated the world both dumping the dollar, and seeking to end its hegemony as the primary reserve currency.