Financial Cooperation in the SCO Amid Intensifying Regional Integration

Abstract

Following three rounds of expansion, the Shanghai Cooperation Organization (SCO) has become the world’s largest comprehensive regional cooperation organization in terms of territory and population. Finance is the lifeblood of modern economies, underpinning economic development and regional stability. Financial cooperation in regional organizations serves as a key driver of economic integration, coordinated development, and enhanced international competitiveness. This study examines financial cooperation among SCO member states, focusing on major initiatives and achievements, and reviews the Organization’s development, mechanisms, challenges, and opportunities. It analyses the SCO’s role in promoting regional financial stability and economic growth, highlighting key mechanisms such as regional financial security, anti-money laundering and counter-terrorist financing, and local currency settlements. Despite challenges, including economic disparities among members and external uncertainties, the SCO can advance regional financial cooperation through multilateral mechanisms and financial innovation. The study provides a comprehensive assessment of existing resources, evaluates the potential of current intra-SCO mechanisms, and identifies both well-established and emerging areas of collaboration. By offering a panoramic view of financial cooperation within the SCO, this research summarizes past achievements and outlines pathways for future development.