Looking East: How Iran is leveraging Asia ties to offset Western pressure
With sanctions still in place and nuclear talks stalled, Iran is using its SCO membership to forge economic and strategic ties across Central and South Asia.
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.”
