Shanghai Cooperation Organization

Shanghai Cooperation Organization is a political, economical and security alliance of a few Asian countries. The purpose behind initiating this organization is to create mutual understanding between neighboring countries regarding politics, economy, trade, technology, culture, education, energy, transport, tourism and making efforts to maintain peace and harmony.

Initiative

SCO was first generated in 2001 with the alliance of five countries, namely, China, Russia, Kyrgyzstan, Tajikistan, and Uzbekistan. It was initiated with the Shanghai five mechanism. In June 2017, the status of a full member was granted to India and Pakistan.

Countries to Participate  

In the meeting being held in Moscow on 18 March 2020, along with the representative of member countries, representatives of Iran, Afghanistan, Belarus, and Magnolia would also be present as observer countries of SCO who wish to become members of the organization.  Armenia, Turkey, Sri Lanka, Nepal, Cambodia, and Azerbaijan are participating as dialogue partners of the Shanghai Cooperation Organization.

Trading

Among all the businesses of a country, trading is the first and foremost factor that predicts the future of the economy of a country. It is the backbone of the economy and the economy is the backbone of a country. The extensive trade, the illustrious will be the economy of a country.

Trading in Local Currency

The Asian countries have been conducting trade in dollars and pounds since forever. Now, they have decided to stop trading in dollars and rather start it in local currencies.  A road map is going to be finalized and signed between Finance Ministers of the eight countries on 18 March 2020 in the SCO meeting being held in Moscow.

Russia, being the Chairman of SCO has invited suggestions from the member countries regarding this agenda. After reviewing all the propositions and suggestions, a system of mutual settlement shall also be channelized. As per the information, the Ministry of Finance Pakistan has geared up for the agenda in light of all the details that are going to be proposed in the Shanghai cooperation organization’s meeting.

Breakthrough

As per the reports, if the trade between these counties would begin to be conducted in local currencies rather than dollars and pounds, it will be a great burst through as this decision will also strengthen the economies and currencies of these countries and will boost their investments and tradings.