In the global market, complete de-dollarization is unlikely to happen. However, some countries still pursue plans to minimize the US dollar’s influence on their economies. Thus, participants of the Shanghai Cooperation Organization (SCO) summit held this year, discussed the possibility of reducing dependency from the US dollar by making arrangements within the SCO in local currencies. Initially, Kazakhstan officials proposed the initiative to raise the share of mutual settlements in national currencies. Leaders of the SCO countries appreciated the idea. In particular, Russia’s Prime Minister Dmitry Medvedev urged the SCO participants to address the issue of financial infrastructure within the organization as soon as possible. Notably, the issue is going to be discussed only in 2020 during the official meeting where member-states will agree on “specific steps that should be supported by certain agreements, technical documents and arrangements with settlement banks.” Financial and banking experts from the SCO members will also try to “coordinate and understand the regulatory and technical side of the issue.” In general, the de-dollarization scheme for the SCO is still in the stage of discussion.
