Iran Proposes Establishing SCO Development Bank at Fourth Consultative Meeting in Shenzhen

Iran’s Deputy Central Bank Governor for International Relations, Abolfazl Koudehi, unveiled technical and operational proposals during the fourth SCO consultative meeting held over two days in Shenzhen, China, aimed at advancing the establishment of an SCO Development Bank.

The Central Bank of Iran said participants reached strategic understandings aimed at accelerating the bank’s establishment, while Koudehi outlined Tehran’s vision for the institution and proposed measures to strengthen its role in facilitating trade, investment, and financial cooperation among SCO members.

Al-Yawm as-Sabi'

Iran, which became a full member of the SCO in 2023, has consistently advocated for deeper banking and monetary cooperation within the organization, and Tehran previously proposed that the new bank’s capital be based on member states’ national currencies.

At an earlier meeting in Kyrgyzstan in late May, Tehran also supported the creation of independent financial settlement mechanisms, as the Shanghai Cooperation Organisation comprises China, Russia, India, Iran, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Belarus.

The Diplomatic Insight reported that Koudehi represented Tehran at the fourth consultative meeting on the SCO Development Bank, held in Shenzhen on June 30 and July 1, where senior officials took part in high-level consultations in China to advance the proposed multilateral financial institution.

It said the two-day meeting brought together representatives from SCO member countries and several observer states to discuss the institutional, technical and operational framework required for launching the proposed development bank, with the Iranian delegation outlining proposals aimed at improving the bank’s effectiveness in facilitating trade and investment.

Khabar-e Gazari Ana

Tehran Times, citing Mehr News Agency and the Central Bank, said Kudehi participated in the fourth two-day consultative meeting held on June 30 and July 1 in Shenzhen, China, and emphasized Iran’s active role in advancing the process of forming the international financial institution.

The Tehran Times also described the discussions as focusing on the technical and executive dimensions and the necessary mechanisms for launching the Shanghai Cooperation Organization Development Bank, with strategic decisions taken to accelerate its establishment.

Iran’s proposals for the SCO Development Bank included adopting national currencies in the bank’s capital structure and leveraging independent mechanisms for financial and commercial settlements, according to Tasnim, which said the assistant for international relations at the Iranian Central Bank stressed the need for an active development finance institution.

Tasnim reported that during a meeting of deputies to the heads of central banks and finance ministers of SCO member states held in Bishkek, the capital of Kyrgyzstan, Iran explained models for settling trade exchanges and project financing mechanisms, and it was decided to place the proposed models on the agenda of the SCO Bank’s interim secretariat for study, assessment, and necessary action.

The site دولت said Abolfazl Koudei, Deputy for International Relations, emphasized strengthening financial cooperation and macroeconomic risk management to broaden the use of national currencies, develop payment and settlement infrastructures, and support financial technologies and green finance.

It added that the proposed Shanghai Cooperation Organization Development Bank could become an effective, credible, and forward-looking institution designed from the outset on principles including independence, inclusiveness, flexibility, and economic justice.