Tehran proposes independent SCO financial institution in Bishkek talks

A senior Iranian banking official has called for the establishment of a dedicated Shanghai Cooperation Organisation development bank designed to operate with member states’ national currencies and independent transaction mechanisms.

Abolfazl Koudehi, Deputy for International Relations at the Central Bank of Iran, presented the proposal during a meeting in Bishkek, suggesting the creation of an “efficient development financial institution” under the name of the Shanghai Development Bank.

He emphasized that the proposed institution should be structured in a way that allows member countries to use their own currencies in capital contributions, while also developing autonomous trade and financial settlement systems.

Koudehi outlined potential frameworks for trade clearing, project financing, and deeper coordination between central banks of SCO member states. The Iranian delegation also advanced proposals aimed at facilitating international transactions, strengthening multilateral financial cooperation, and building independent regional payment infrastructure.

Participants at the meeting agreed to forward the proposed models to the SCO interim secretariat for further assessment, review, and implementation consideration.

Koudehi said the discussions reflect ongoing trust-based engagement within the SCO framework, stressing that economic security, financial stability, and sustainable development depend on closer coordination and the creation of integrated banking mechanisms among member states.

The agenda of the Bishkek meeting also included expanding the use of national currencies, improving macroeconomic risk management, and enhancing regional payment and settlement systems. The SCO gathering of central bank governors and finance ministers continues over two days, with Iran participating as a full member.