Iranian President Masoud Pezeshkian has urged BRICS member states to deepen their commitment to de-dollarization, emphasizing the strategic importance of the bloc's financial framework to lessen dependence on the US dollar. Pezeshkian's remarks came ahead of the 18th BRICS Leaders’ Summit in New Delhi, marking his first visit to India as president.
Tehran's advocacy for alternative financial channels is particularly significant as Iran continues to navigate extensive US sanctions. For Iran, expanding trade in national currencies with BRICS partners offers a critical pathway to mitigate the economic impact of these restrictions and foster greater financial autonomy.
Boosting the New Development Bank's Role
According to Iran’s Islamic Republic News Agency (IRNA), President Pezeshkian highlighted the New Development Bank (NDB) as a key institution designed to help countries move away from dollar reliance. He described the NDB's creation as a countermeasure against what he perceives as US efforts to maintain global financial dominance.
Iran officially joined BRICS in 2024 and views the alliance as a vital platform for strengthening economic ties outside the traditional US-led financial system. In August, Iran’s central bank governor confirmed Tehran's preparations to join the NDB and expressed a strong desire to expand trade using national currencies with other BRICS members.
BRICS' Broader De-Dollarization Agenda
Pezeshkian's call aligns with a growing consensus within BRICS to promote the use of local currencies in cross-border trade and develop alternative payment mechanisms. This broader agenda seeks to reduce the bloc's exposure to the dollar-dominated global financial system.
The NDB, headquartered in Shanghai, was established in 2015 by the original BRICS members: Brazil, Russia, India, China, and South Africa. Its primary mandate is to finance infrastructure and sustainable development projects across BRICS nations and other emerging economies, positioning itself as a complement to existing multilateral financial institutions.
Challenges and Geopolitical Context
Despite the strong political will, the push for de-dollarization faces practical hurdles, including varying financial systems, currency convertibility issues, and the sheer scale of global trade still conducted in US dollars. The dollar remains deeply entrenched in international commerce, banking, and financial markets.
President Pezeshkian's arrival in New Delhi on Friday for the summit is his first trip to India in over eight years. He is scheduled to meet Prime Minister Narendra Modi. The summit, held from September 12-13, takes place amidst a complex global landscape, including ongoing conflicts and intensifying geopolitical rivalries, underscoring the strategic importance of BRICS as a forum for economic and political cooperation.