The Shanghai Cooperation Organization (SCO) intends to make targeted efforts to expand the sphere of mutual settlements in national currencies between the member states of the association, SCO Secretary-General Zhang Ming told TASS on Tuesday.
"Today on the agenda is the implementation of a road map to gradually increase the share of national currencies in mutual settlements of SCO member states," he said at the Boao Forum for Asia in Hainan.
According to the head of the organization, an important factor for developing inter-regional trade and investment between the SCO countries is the "consistent expansion of national currency use by the member states". Zhang Ming added that the realization of the tasks set by the leaders of the eight SCO member countries "will allow to form a space of open, mutually beneficial and equal interaction in the Eurasian region."
He specified that this process will be carried out "in accordance with the norms and principles of international law, taking into account the national interests of all participants."
In January, the Ministry of commerce of the PRC reported that the Chinese authorities will take stimulating measures to expand the use of the yuan in international trade and in the implementation of foreign economic projects. In this regard, the country's financial institutions should intensify mutual settlements with other countries in local currency, provide quality services and "create favorable conditions to increase the scale of transactions in renminbi for investment and trade transactions" with foreign companies. According to the Chinese government's decision, the country's competent institutions will stimulate the issuance of RMB loans abroad.
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Photo: Russian Foreign Ministry
Based on materials from TASS