Iran proposes establishment of SCO development bank

Abolfazl Koudehi, deputy for international relations at the Central Bank of Iran, proposed the establishment of an "efficient development financial institution" — the Shanghai Development Bank — during a meeting of SCO central bank governors and finance ministers in Bishkek, Kyrgyzstan. The proposal envisions using national currencies in the bank's capital structure and creating independent trade and financial settlement mechanisms, 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.

According to Mehr News, the Iranian delegation's proposals aim to enhance regional economic integration and reduce reliance on external financial systems.