Kofi Mensah Iranian President Ebrahim Raisi has vocally endorsed the concept of de-dollarization, arguing that in order to “construct an equitable global system,” the U.S. dollar’s supremacy needs to be displaced. “The dominance of the dollar forms the foundation of Western control,” the Iranian leader stressed.
Iran’s President Promotes De-Dollarization at SCO Summit
During the 23rd virtual summit of the Shanghai Cooperation Organisation (SCO) Council of Heads of State, Iran’s President Ebrahim Raisi advocated strongly for de-dollarization. The summit, hosted by India and presided over by its Prime Minister Narendra Modi, was also the occasion for Iran’s introduction as a new permanent member of the SCO.
Other notable attendees of the summit included President Xi Jinping of China, President Vladimir Putin of Russia, President Kassym-Jomart Tokayev of Kazakhstan, President Sadyr Japarov of Kyrgyzstan, Prime Minister Shehbaz Sharif of Pakistan, President Emomali Rahmon of Tajikistan, and President Shavkat Mirziyoyev of Uzbekistan.
In his summit address, Raisi highlighted the significance of constructing a more balanced global order where the U.S. dollar doesn’t hold monopoly as the sole dominant currency. He said, as reported by the Tehran Times, “Economic coercion and sanctions employed by Western hegemonic powers have threatened world security and economic prosperity, as well as the principles of fair trade.”
“The experiences of the past few decades have shown us that alongside militarism, the dominance of the dollar has been a cornerstone of the Western control system,” he went on to add, stressing that:
As a result, removing this tool of dominance from regional relations is essential for forming a more equitable international system.
Raisi further emphasized, “We need to pay more serious attention to the expansion of national currencies in international trade and financial exchanges between members of this organization and their business partners.” The Iranian leader welcomed any initiative to introduce financial payment methods powered by modern technologies, which could facilitate financial transactions between members and business partners, especially within multilateral contexts.
Furthermore, Raisi pointed out that the SCO member nations could foster unity and peace by endorsing a civilization based on ethics, spirituality, justice, reason, and respect for human dignity. He shared his thoughts:
The Shanghai Cooperation Organisation, exemplifying this ‘grand family of civilizations,’ is now in a position that can create new frontiers of regional unity and security cooperation.
He added, “In regards to respect for nations’ sovereignty, contemporary multilateralism implies the combined efforts and synergy of independent nations to achieve common good. This view of multilateralism opposes security alliances that incite violence and hostility towards other nations. Genuine multilateralism benefits nations, not powers. By respecting each other’s sovereignty and relying on mutually beneficial cooperation, we can realize our high aspirations for security and sustainable development.”
Both Chinese President Xi Jinping and Russian President Vladimir Putin also encouraged the use of national currencies in trade settlements at the summit. As Putin noted, over 80 percent of trade transactions between Russia and China are already processed in Russian rubles and Chinese yuan.
We’d love to hear your views on the comments made by Iran’s President Raisi. Share your thoughts in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about De-dollarization
What did Iran’s President Ebrahim Raisi propose at the SCO Summit?
At the SCO Summit, Iran’s President Ebrahim Raisi proposed de-dollarization, arguing for a more balanced global system where the U.S. dollar doesn’t have monopoly as the sole dominant currency.
What does de-dollarization mean in this context?
De-dollarization in this context refers to the proposal to lessen the world’s dependency on the U.S. dollar for international trade and financial transactions, promoting instead the use of national currencies.
Who are the SCO member nations?
The SCO member nations include China, Russia, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Uzbekistan, and as of the 23rd virtual summit, Iran.
Which other world leaders were present at the SCO summit?
Leaders present at the SCO summit included President Xi Jinping of China, President Vladimir Putin of Russia, President Kassym-Jomart Tokayev of Kazakhstan, President Sadyr Japarov of Kyrgyzstan, Prime Minister Shehbaz Sharif of Pakistan, President Emomali Rahmon of Tajikistan, and President Shavkat Mirziyoyev of Uzbekistan.
What is the Shanghai Cooperation Organisation (SCO)?
The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, and security alliance. The SCO aims to strengthen relations among member states and promote cooperation in political affairs, economics and trade, scientific-technical, cultural, and educational spheres, as well as in energy, transportation, tourism, and environmental protection.
5 comments
Wow, didn’t expect this from the SCO summit. Things are definitely heating up in the global financial scene. Lets see where this leads. Interesting times ahead for sure.
i’m not sure if this will work out. the US dollar is so ingrained in global finance, it’s a uphill battle. but it is interesting to see this push. Raisi has a point. Western dominance is too much some times.
Here’s the thing, replacing the dollar isn’t gonna be easy. its been at the top for too long. but I’m all for a bit more balance in the world economy.
De-dollarization is a complex issue… it could destabilize markets if not handled right… But it could also level the playing field, so to speak. Guess we’ll just have to see.
Its about time someone spoke out about this! Why should the US dollar be the only dominant currency? Good on Raisi for bringing this up.