Iran's proposal; The "Special Accounts and Settlements Initiative of the Shanghai Cooperation Organization" a mechanism to enhance financial cooperation

Pars Today - Masoud Pezeshkian said: The Islamic Republic of Iran believes that the Shanghai Cooperation Organization, as one of the important pillars of the multipolarization of the international system, should take practical, specific, and transparent steps in two parallel paths to create a more peaceful world and also a world more prepared for the expansion of economic cooperation.

On Monday, at the 25th Summit of the Shanghai Cooperation Organization (SCO) Heads of State in Tianjin, China, Masoud Pezeshkian, President of the Islamic Republic of Iran, stated that to strengthen financial cooperation and mitigate the impact of illegal sanctions on economic interactions among member states, the Islamic Republic of Iran proposes enhancing the "Special SCO Accounts and Settlements Initiative" as a practical mechanism to boost financial cooperation. He emphasized that this initiative is based on three main pillars: expanding settlements in national currencies and reducing reliance on the U.S. dollar in member transactions, establishing shared digital infrastructure and using central bank digital currencies for secure and fast payments, and creating a multilateral currency swap fund to support countries facing sanction pressures or liquidity crises.

According to Pars Today, the text of the speech by the President of the Islamic Republic of Iran at this summit is as follows:

In the name of God, the Most Compassionate, the Most Merciful

Mr. Xi Jinping, Honorable President of the People's Republic of China,

Please accept my gratitude on behalf of the great Iranian nation for your warm hospitality and dignified hosting of this summit, as well as all your continuous efforts and those of the People’s Republic of China, in forming and strengthening the Shanghai Cooperation Organization.

Mr. President,

Honorable Presidents, Prime Ministers, and members of the Shanghai Cooperation Organization,

The Shanghai Cooperation Organization stands as a symbol of peace and goodwill among its members in a world that faces a new crisis every day. The illegal military aggression against the Islamic Republic of Iran by the Zionist regime and the United States in June, along with the ongoing massacre of the oppressed people of Gaza, coupled with the unchecked expansion of the use of unlawful sanctions against various countries, are clear examples of the failure of the contemporary world to establish an appropriate model for global governance and to solidify international peace and security.

Since its establishment, the Shanghai Cooperation Organization (SCO), emphasizing the principles of mutual trust and benefit, equality, collective consultation, respect for cultural diversity, and common development, has made its primary objectives ensuring collective security and expanding cooperation in various fields. With respect to these principles, the Islamic Republic of Iran declares its full readiness to play an appropriate role in this regard.

The Islamic Republic of Iran believes that the Shanghai Cooperation Organization, as one of the key pillars in the multipolarization of the international system, must take clear, transparent, and operational steps along two parallel paths: creating a more peaceful world and fostering a more conducive world for expanding economic cooperation.

In this framework, I would like to emphasize a specific proposal by the Islamic Republic of Iran for the more organized pursuit of two critical imperatives or efforts: the "necessity of peacemaking" and the "imperative of strengthening financial cooperation to mitigate the impact of unilateral sanctions."

In the field of peacemaking, it is essential to establish a committee comprised of the foreign ministers of the member countries. This committee should engage in dialogue and consultation regarding various crises that threaten regional peace and security, formulate operational proposals for crisis management, and present a mechanism for their follow-up.

This committee must have the capability to convene immediately at the request of any member during various crises, whether potential or actual. It should officially act as the intellectual and operational arm of the organization, playing an appropriate role in addressing these crises. Particularly in situations where the sovereignty of one of the members is violated, this mechanism should respond promptly and work through various means to support the member whose sovereignty has been breached.

In the field of strengthening financial cooperation to mitigate the impacts of illegal sanctions on economic interactions among member states, the Islamic Republic of Iran proposes enhancing the initiative for "Special Accounts and Settlements of the Shanghai Cooperation Organization" as a practical mechanism to bolster financial cooperation. This initiative is based on three main pillars:

- Expanding settlements in national currencies and reducing dependence on the dollar in transactions among members.

- Establishing shared digital infrastructure and utilizing central bank digital currencies for secure and fast payments.

- Creating a multilateral currency swap fund to support countries facing sanction pressures or liquidity crises.

We believe that the implementation of this initiative can not only enhance the economic resilience of member states but also transform the Shanghai Cooperation Organization into a successful model for establishing a multipolar, fair, and externally pressure-resistant financial order.

Moreover, the Islamic Republic of Iran welcomes initiatives such as the establishment of specialized centers to address security threats and challenges, the creation of an anti-drug trafficking center, the development of rapid response mechanisms during critical situations, the establishment of a strategic studies center, and the expansion of the organization's official languages. These measures are seen as effective steps towards strengthening collective cooperation and fostering sustainable ties among nations.

The Islamic Republic of Iran, relying on its unique geopolitical and transit position and access to various regions, is also prepared to provide the necessary groundwork for expanding regional cooperation and facilitating access for interested countries. 

Through ongoing efforts, the port of Chabahar on the Indian Ocean will soon be connected to Iran’s nationwide rail network, creating a significant development in linking China, Central Asian countries, and Afghanistan to the Indian Ocean. Investors can take advantage of various incentives and discounts to develop and establish logistics hubs in this port.

The Islamic Republic of Iran views the implementation of the 10-year development strategy of the Shanghai Cooperation Organization as a historic opportunity to expand cooperation and investments in areas such as infrastructure, technological development, energy, the digital economy, climate change and environmental issues, culture, and science, and is prepared to play an active role in achieving these goals.

In conclusion, I find it necessary to express the Islamic Republic of Iran’s alignment with the constructive vision of President Xi Jinping regarding the necessity of reform in global governance, which has been presented under the framework of the "Global Governance Initiative." The Islamic Republic of Iran considers the proposal of such perspectives as an effective step towards achieving a fairer world.

Thank you for your attention.