Iran urges for establishing SCO development bank

TABNAK, May 29 - Iran proposed the creation of a Shanghai Cooperation Organisation development bank funded with national currencies and equipped with independent settlement systems.

News ID: 7452

Date: 29 May 2026 - 14:55

Abolfazl Koudehi, deputy for international relations at the Central Bank of Iran, told the gathering in Bishkek that an "efficient development financial institution" — the Shanghai Development Bank — should be established with national currencies used in its capital structure and independent trade and financial settlement mechanisms put in place, according to the bank's official website.

Koudehi outlined models for trade clearing, project financing and strengthened cooperation among member states' central banks under the proposed institution. The Iranian delegation also presented proposals on easing international transactions, reinforcing multilateralism and building independent infrastructure within the framework of regional cooperation.

The meeting agreed to refer the proposed models to the SCO's interim secretariat for review, evaluation and action.

Koudehi said the visit was part of a constant dialogue based on trust within the SCO framework, stressing that economic security, financial stability and sustainable development require close coordination and the creation of banking and financial mechanisms among member states. The agenda also included strengthening financial cooperation, managing macroeconomic risks, expanding the use of national currencies and developing payment and settlement infrastructure.

The SCO central bank governors and finance ministers' meeting is taking place in Bishkek over two days. Iran is an active participant as a full member.