As nuclear talks with the United States stall and sanctions remain firmly in place, Iran is intensifying efforts to deepen ties with Eastern partners, most recently by proposing a joint bank at a high-level Shanghai Cooperation Organization (SCO) meeting in Beijing this week. 

Since becoming a full SCO member in July 2023, Tehran has used the bloc to expand its political, economic and security footprint, positioning itself as a key regional player beyond the reach of Western pressure.

Central Bank of Iran (CBI) Governor Mohammad Reza Farzin formally floated the idea of establishing a joint SCO bank while attending the gathering of central bank heads in Beijing. This year’s agenda focused on building a collective banking system and shared financial infrastructure for member states.

During his visit, Farzin emphasized that Iran would pursue the plan until a final outcome is achieved. Reflecting Tehran’s interest in bypassing Western financial channels, he said such a mechanism would “reduce reliance” on the World Bank and IMF and “create a platform for regional and Eastern countries to pursue multilateral objectives in banking and finance.”