Xi Jinping, the President of China, has issued a call to increase the use of national currencies to settle trade obligations between members of the Shanghai Cooperation Organization (SCO).

The Chinese leader issued his call while speaking via video link at a summit of the SCO on Tuesday, where he noted that there exist a variety of financial instruments which members could draw upon to expand their mutual economic ties.

Xi stated, “It is necessary to ramp up cooperation in sovereign digital currency and work on the establishment of an SCO development bank.” He went on to assert that Beijing’s SCO partners would be given free access to Chinese markets, so they all might share in the prosperity.

China has been increasingly replacing the dollar in its bilateral trade settlements with Russia with national currencies. Even after trade between the two nations hit a record high $190.3 billion in annual terms in 2022, it has continued to accelerate. Since the beginning of 2023 exports and imports have surged at a double-digit pace.

Between January and May Russia-China trade surged to $93.8 billion according to customs data, which was a 40.7% increase over one year prior. Currently bilateral trade is projected to surpass the $200 billion target set by the government earlier than anticipated, according to a recent statement by Russian Finance Minister Anton Siluanov.

Indian Prime Minister Narendra Modi is chairing the 23rd SCO summit.

Founded in 2001 by the presidents of Russia, China, the Kyrgyz Republic, Kazakhstan, Tajikistan, and Uzbekistan, the SCO was designed to serve as an economic and security bloc. In 2017, India and Pakistan joined the organization as permanent members.