Iranian President Ebrahim Raisi has called for a global shift away from the US dollar in order to reduce reliance on the Western financial system. Speaking at a virtual summit of the Shanghai Cooperation Organization (SCO) on Tuesday, Raisi urged member countries to abandon the dollar and use national currencies for international trade. Raisi argued that the hegemony of the Western world has contributed to the dominance of the dollar and that it is necessary to create a new world order by removing this instrument of hegemony.
In addition to advocating for a shift away from the dollar, Raisi expressed a desire to expand cooperation with Russia in building new transport routes in Iran. This comes after Russian President Vladimir Putin and Raisi signed an agreement in May for the construction of a railway between the Iranian cities of Rasht and Astara. The railway is part of the International North South Transport Corridor (INSTC), a multi-mode transit system that connects ship, rail, and road routes for moving cargo between India, Iran, Azerbaijan, Russia, Central Asia, and Europe.
Raisi also highlighted the economic development potential of Iran’s membership in the SCO. Iran became a full member of the organization during the current summit, which was chaired by Indian Prime Minister Narendra Modi. The SCO was founded in 2001 as an economic and security bloc and includes Russia, China, the Kyrgyz Republic, Kazakhstan, Tajikistan, Uzbekistan, India, and Pakistan as permanent members.
Iran’s strengthening ties with key allies, such as Russia, comes as the country gradually emerges from diplomatic isolation and faces Western economic sanctions. Over the past year, Russia and Iran have significantly increased economic cooperation, with bilateral trade turnover nearly tripling from $1.6 billion in 2019 to $4.6 billion in 2022, according to official data.
Iran’s call to abandon the US dollar and promote the use of national currencies in global trade reflects a broader trend of countries seeking to reduce their dependence on the Western financial system. This shift is motivated by concerns about the dominance of the dollar and the potential impact of Western sanctions on countries’ economies. As geopolitical dynamics continue to evolve, the role of currencies in international trade is likely to undergo further transformation.
In conclusion, President Raisi’s call to abandon the US dollar in global trade and use national currencies reflects Iran’s desire to reduce reliance on the Western financial system. By advocating for a new world order and promoting economic cooperation with Russia through infrastructure projects, Iran is seeking to strengthen its position in the international community. As Iran’s ties with key allies continue to grow, the country hopes to navigate the challenges posed by Western economic sanctions and further its economic development.