Iran proposed a new currency for trade with China, Russia, India, Pakistan, and other members of the Shanghai Cooperation Organization (SCO). This could help circumvent illegal Western sanctions and weaken US dollar hegemony.

Iran has proposed creating a new currency to do trade with China, Russia, India, Pakistan, and other members of the Shanghai Cooperation Organization (SCO).

Tehran sent a letter to the SCO in early 2022 suggesting that a new currency could help the Eurasian nations strengthen their bilateral trade with each other, according to Iran's foreign minister for economic diplomacy, Mehdi Safari.

A Eurasian currency would also make it easier for these countries to circumvent unilateral Western sanctions, which are illegal under international law.

Such a development would directly challenge the US-dominated financial system and the status of the dollar as the de facto global reserve currency. The US dollar is still used in the majority of global trade transactions, although the overall percentage is shrinking by the year.