Russia has asked for suggestions from SCO member countries for using national currencies instead of US dollar for mutual settlement of bilateral trade claims. A road map for the open-ended exchange policy shall be decided in the meeting of finance ministers of this trade block. Former Prime Minister of Malaysia Mahatir Mohammad had floated a proposal of a joint token currency for the settlement of mutual trade claims in a summit of South East Asian Countries last year, describing the US dollar a manipulative hard currency hindering the expansion of regional trade.
The idea of open ended exchange rate policy of free convertibility of national currencies is not new one. The benefit of such an arrangement had been highlighted when federal government had held a series of seminars in 1992 on Pakistan’s trade facilitation to the Central Asian States. But the proposal was not seriously pursued at the forum former Economic Cooperation Organisation. Let us hope that this time use of US dollar can be excluded among the SCO member countries in bilateral trade.
