The meeting, held as part of the SCO's 25th anniversary commemorations, concluded with member states signing a joint protocol and agreeing to refer Iran's proposed models to the organization's interim secretariat for further review and evaluation.
According to the Iranian proposal, the Shanghai Development Bank would be capitalized using the national currencies of SCO member states and equipped with independent trade and financial settlement systems. The initiative is designed to facilitate regional trade, finance large-scale infrastructure projects—particularly in transportation and energy corridors—and strengthen cooperation among member countries' central banks.
National Currencies Are De-Dollarizing Their Economies
Expanding the use of national currencies in bilateral and multilateral transactions was another key focus of the Bishkek meeting. In their concluding statements, SCO members emphasized the importance of increasing the use of local currencies in mutual settlements and developing practical mechanisms for cooperation among financial institutions across the region.
Participants also discussed greater coordination of monetary policies to enhance the resilience of member states' banking systems against global financial volatility. Officials indicated that plans are underway to accelerate the adoption of local-currency settlements and modernize cross-border financial infrastructure.
According to statements referenced during the meeting, these measures are expected to reduce transaction costs, improve trade efficiency, and strengthen regional financial independence.
SCO officials stressed that the growing use of national currencies should not be interpreted as a disengagement from the global financial system. Rather, they described it as a strategy to reduce reliance on the U.S. dollar while diversifying financial and trade instruments available to member states.
Prospects For Establishment of Development Bank
Meanwhile, discussions on establishing the Shanghai Development Bank continue to advance. The initiative, which was reportedly endorsed in principle at the SCO Summit in Tianjin in September 2025, is expected to play a significant role in financing major infrastructure projects across member countries.
Ahead of the Bishkek meeting, SCO Deputy Secretary-General Sohail Khan stated that member states were working to increase the share of national currencies in mutual settlements and to deepen banking and investment cooperation.
The developments in Bishkek underscore a broader effort by SCO members to build a more independent regional financial architecture. Supporters of the initiative argue that such mechanisms could help reduce vulnerability to unilateral sanctions and geopolitical disruptions while maintaining constructive engagement with the global economy.