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SCO bank push
Iran’s deputy central bank governor Abolfazl Koudehi presented technical and operational proposals for the creation of a Shanghai Cooperation Organisation development bank during a two-day consultative meeting in Shenzhen, China.
Mehr News Agency said the gathering was the fourth consultative meeting and brought together representatives of SCO member states and some observer countries to discuss technical, operational and implementation aspects of the proposed bank.
A central bank statement said strategic decisions were taken to accelerate the bank's establishment, and Koudehi outlined Iran's approach to enhance the bank’s effectiveness in facilitating economic interactions among member states.
Tehran first proposed the creation of an SCO development bank at a meeting in Kyrgyzstan in late May, advocating for the use of national currencies in the bank's capital structure and independent financial settlement mechanisms.
Dates, venue, participants
Tehran Times, citing Mehr News Agency, said Kudehi participated in the fourth two-day consultative meeting held on June 30 and July 1 in Shenzhen, China.
The Diplomatic Insight said the fourth consultative meeting on the SCO Development Bank was held in Shenzhen on June 30 and July 1, with senior officials taking part in high-level consultations in China aimed at advancing the proposed multilateral financial institution.
ISNA reported that Mehraad Kiayi, the Director General for Coordination of SCO and BRICS Affairs at the Ministry of Foreign Affairs, said a delegation from the Central Bank of the Islamic Republic of Iran would attend the fourth consultative meeting to review the draft memorandum of understanding for the establishment of the Bank of the Shanghai Cooperation Organization in Shenzhen, China.
ISNA quoted Kiayi saying, "The Shenzhen meeting is a suitable opportunity for exchanging expert views on the legal and operational framework for establishing the Bank of the Shanghai Cooperation Organization".
Framework and next steps
Beyond the Shenzhen consultative meeting, Mehr News Agency reported that Koudehi said Iran’s delegation would have an active and effective presence at the meeting of the heads of central banks and finance ministers of the Shanghai Cooperation Organization held on the 7th and 8th of Khordad this year in Bishkek, Kyrgyzstan.
The site دولت quoted Koudei stressing the need to strengthen financial cooperation and macroeconomic risk management to broaden the use of national currencies and develop payment and settlement infrastructures, and it said the proposed development bank could become an effective, credible, and forward-looking institution.
Noor News said it was decided that the proposed models for commercial settlement and project financing be placed on the agenda for review, assessment, and action by the temporary secretariat of the Shanghai Cooperation Organization Bank.
Noor News also described Koudehi’s trip as part of ongoing dialogue based on trust and within the SCO's objectives, listing strengthening financial cooperation and macroeconomic risk management, expanding the use of national currencies, and developing payment and settlement infrastructures as among the objectives of the meeting.
