Putin Proposes Trade in National Currencies to Reduce Reliance on Dollar

TIANJIN, China: Russian President Vladimir Putin on Monday proposed the use of respective national currencies in mutual trade settlements, a move aimed at reducing reliance on Western-dominated systems and strengthening the Global South’s financial sovereignty.

Putin pitched the plan to challenge dollar dominance at the Shanghai Cooperation Organisation (SCO) summit in Tianjin.

He also outlined a sweeping plan for deeper financial and economic integration among member states, positioning the bloc as a model of resilience and autonomy in an era of global turbulence.

In his address to leaders of China, India, Pakistan, Central Asian states and observer countries, Putin proposed the issuance of joint bonds by SCO nations to fund shared development projects and shield regional economies from external shocks.

He also called for the creation of a joint payments and settlement system, a shared depository infrastructure, and a dedicated bank to back strategic investments across Eurasia.

“These steps will strengthen our collective ability to act independently, reduce vulnerability to outside pressure, and build a more balanced financial order,” Putin said, noting that SCO economies grew by an average of five per cent last year despite global headwinds.

While reiterating Moscow’s long-standing grievances over the Ukraine conflict, Putin also struck a conciliatory note, acknowledging the role of China and India in encouraging dialogue and voicing cautious optimism that recent international contacts could contribute to de-escalation.

The address framed the SCO as a platform of “genuine multilateralism”, rejecting bloc confrontation and urging members to advance both security and development in tandem.

Observers said the constructive thrust of Putin’s message—particularly his concrete financial proposals—marked one of the clearest attempts in recent years to define a practical economic identity for the Eurasian grouping.

The summit, hosted by China, also saw leaders of India and other member states stress co-operation on counterterrorism, technology, and energy, reinforcing the SCO’s ambition to serve as both a security umbrella and an economic anchor in a shifting global order.

💬 President Vladimir #Putin:#SCO makes a tangible contribution to strengthening cooperation & mutual trust across the Eurasian continent, helping lay the political and socioeconomic foundations for a new system of stability & security in Eurasia.https://t.co/JeAIaA6dFW pic.twitter.com/awy9LE1PuP

— MFA Russia 🇷🇺 (@mfa_russia) September 1, 2025

By pushing forward mechanisms for regional finance and investment, Putin’s plan signalled a bid to institutionalise economic solidarity at a time when sanctions, conflicts, and currency volatility are reshaping the global landscape.