China-led SCO bloc looks to fast-track plan for new bank that would rival Western lenders
Member states seek more financial autonomy and localised credit by advancing an effort to fund regional growth using their national currencies, not the US dollar
A 10-nation security and economic bloc that includes China, Russia and Iran has accelerated efforts to launch a development bank, aiming to address the group’s growing infrastructure needs while challenging Western financial dominance.
However, the project faces headwinds as at least one key member may be less motivated than others to back the bank, according to an expert on the group, potentially complicating the path towards a final agreement.
In recent months, member states of the Shanghai Cooperation Organisation (SCO) have intensified multilateral consultations to hammer out specific details surrounding the joint lender.