Feasibility of De dollarization in Iran's economy based on membership in Shanghai Cooperation Organization

Document Type : Research

Authors

1 - Visiting Professor, Department of Political Science, Faculty of Law and Political Science, Ferdowsi University of Mashhad, Mashhad, Iran.

2 Associate Professor, Department of Political Science, Faculty of Law and Political Science, Ferdowsi University of Mashhad, Mashhad, Iran.

10.22126/ipes.2023.9023.1567

Abstract

Dependence on the dollar, which is interpreted as dollarization, has created many problems for the countries of the world, the most important of which are the devaluation of the national currency and inflationary shocks. In contrast to such a situation, the process of de dollarization has been proposed to reduce dependence on the fluctuations of this currency and also to increase the power of central banks. The purpose of this research is to determine the feasibility of the de-dollarization of Iran's economy. Considering that the two countries China and Russia are using their global exchange systems and both are members of the Shanghai Cooperation Organization, the question has been raised as to what advantages membership in this organization has created for Iran according to the Shanghai Economic Agreements and how the field of dedollarization will provide for Iran? The research hypothesizes that according to the activity of the global exchange systems of China and Russia in front of SWIFT, using the context of Shanghai economic cooperation is a suitable platform for Iran's dedollarization. To investigate the current situation, using the time series technique, the information of the period from 1996 to 2020 has been analyzed and it has been determined that the membership in Shanghai has increased the trade exchanges of the member countries of this organization. Considering that the destination of 14% of Iran's exports and the origin of 36% of Iran's imports are Shanghai member countries and all the members of this organization are conducting commercial exchanges with SWIFT alternative systems, the start of Iran's official activity in the Shanghai Organization in addition to preparing the ground The increase in economic exchanges, due to the expansion of partner countries in the systems of China and Russia, has also provided a suitable platform for the de-dollarization of Iran's trade.

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References

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History

  • Receive Date: 15 April 2023
  • Revise Date: 23 November 2023
  • Accept Date: 27 November 2023

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