Russian President Vladimir Putin highlighted a notable shift in how the SCO member states settle their trade, noting that the share of payments made in national currencies in January through April surpassed 92 percent. He pointed to this performance as evidence of a growing preference among SCO partners for ruble, yuan, and other home currencies in routine settlements, a trend the Kremlin has repeatedly described as strengthening regional financial autonomy. The remarks were transmitted by the Kremlin press service and are presented as part of a broader push to diversify payment systems beyond the dollar-centric model that has dominated international trade for decades.
During the remarks, Putin reminded audiences of Russia’s longstanding proposal to establish its own payment and settlement mechanism within the SCO framework. The aim, he explained, is to create a robust, multilateral platform that reduces exposure to external fluctuations and helps member states manage cross-border transactions with greater predictability. This concept aligns with wider efforts to shorten settlement times, decrease currency conversion costs, and foster smoother financial cooperation among the bloc’s diverse economies. The quote was circulated with the understanding that a national settlement approach could complement existing financial arrangements and potentially accelerate the adoption of national currencies in routine commerce.
Comparative data from the previous year show a meaningful expansion in trade turnover between Russia and SCO nations, rising by about a quarter. Analysts note that this growth reflects intensified collaboration across multiple sectors, including culture, science, and education, as well as joint efforts in environmental protection and public health. The strengthening ties signal a broader trend toward closer economic alignment among BRICS and SCO participants, as governments seek more stable, independent channels for their trade and investment flows. Cited officials emphasize that such diversification of payment methods is not a one-off policy move but part of a longer-term strategy to foster resilience in regional economies and reduce reliance on any single currency system. Attribution: Kremlin press service and official BRICS follow-ups provide context for these updates.
Observations from observers in Turkey indicate that while agreements in principle on conducting trade with Russia in national currencies have been discussed, practical implementation remains in development. Market commentators stress the need for clear decisions on how the ruble and the lira would interact in cross-border settlements, including exchange rate mechanisms, liquidity provisions, and regulatory alignment. Until such decisions are finalized, the trajectory toward wider use of national currencies in bilateral deals may proceed in a phased manner, with pilot projects and small-scale tests guiding subsequent expansions. The emphasis remains on reducing the frequency of dollar-based settlements while ensuring the reliability and transparency demanded by international traders. Attribution: economic analysts cited by regional news outlets.
Earlier reports have indicated that BRICS authorities are considering a unified platform for payments in digital national currencies. The goal of such a platform would be to streamline cross-border payments, lower costs, and accelerate settlement cycles by leveraging modern fintech and distributed ledger technologies where appropriate. Proponents argue that a centralized mechanism could improve visibility across transactions, enhance regulatory coordination, and support macroeconomic objectives by fostering monetary sovereignty among participating states. Critics, however, caution about interoperability challenges, regulatory variance, and the need for strong governance to prevent fragmentation. In this evolving landscape, the dialogue around de-dollarization continues to surface in public discourse, with officials and economists weighing potential benefits against implementation hurdles. Attribution: BRICS communications and regional financial analyses provide background for these discussions.