As the world’s political landscape continually shifts, the question of monetary dominance resonates on a global stage, particularly within the confines of the Shanghai Cooperation Organisation (SCO).
The significant concern isn’t merely about the balance of power but, in particular, the argument for de-dollarization as a means to achieving a more balanced world order.
Iran’s bid for a balanced financial world order
President Ebrahim Raisi of Iran recently echoed the sentiments towards a fairer world order during the 23rd SCO summit.
He stressed the urgency of transitioning away from a dollar-dominated economy, a change that, in his opinion, would restore balance in global trade and economic prosperity.
His argument is a familiar one, advocating for a break from Western financial hegemony, which he alleges undermines the principles of fair trade and global economic security.
His critique extends to the Western powers’ reliance on economic coercion and sanctions as tools for enforcing their dominion.
With this perspective, Raisi suggests the de-dollarization process could usher in a new era of international relations, alleviating the unfair advantage currently held by Western powers and fostering a more egalitarian system of international trade and cooperation.
The promise of the SCO: New opportunities or same old politics?
Iran’s recent elevation to full membership status in the SCO could be a turning point for the nation and the world.
The SCO, composed of powerhouse nations like China and Russia and strategic countries such as Kazakhstan and Pakistan, offers a platform where Iran can voice its concerns and potentially rally support for its de-dollarization agenda.
As Iran fully embraces its new role within the SCO, it aims to leverage this platform to promote sustainable development, collective security, and increased unity among member nations.
It’s a step towards solidifying its position in the emerging world order, emphasizing the need for a fairer world economy where the U.S. dollar is not the sole dominant currency.
The Iranian president lauded the economic capacities of the SCO and saw in its potential a possible answer to the currency monopoly.
Proposing the use of national currencies in international trade and financial exchanges, he suggested, would erode the Western powers’ economic influence, thereby paving the way for a more equitable international trade system.
This perspective carries significant weight, considering the growing prominence of Asian superpowers and the geopolitical shifts currently underway.
The world order is indeed changing, and with Iran’s full membership in the SCO, it’s clear that the dialogue surrounding de-dollarization will only intensify.
Bottomline is Iran’s calls for de-dollarization pose an interesting, even provocative, challenge to the status quo. Whether this shift could genuinely lead to fairness on the global stage is a matter of debate.
What’s undeniable, however, is that the discourse around the U.S. dollar’s dominance in international trade is gaining momentum.
A move towards a more diversified global currency system could indeed challenge existing power structures and herald a new era of international relations, one in which all nations, regardless of their economic or geopolitical standing, can engage on a more equal footing.
