Iran pitches wider use of national currencies in BRICS trade

Iranian President Masoud Pezeshkian on Friday, 11 September called for a stronger shift towards the use of national currencies in trade among BRICS members, arguing that diversifying payment channels and sources of financing would make the bloc's economies more resilient to geopolitical and financial shocks.

“One of the most important steps is to expand the use of national currencies in trade among the members,” Pezeshkian said while addressing the BRICS Business Forum in Delhi.

He said the current international financial system was vulnerable to political shocks because of its concentration on a limited number of currencies. Greater use of national currencies, backed by mechanisms to manage currency risks and facilitate reciprocal settlements, could help protect intra-BRICS trade from political pressure, he said.

Pezeshkian said the world was going through a period of heightened geopolitical uncertainty and supply-chain disruptions, while economic instruments were increasingly being used to exert political pressure.

Iran, he said, believed that economic resilience was not possible without diversifying trade partners, sources of financing and payment channels.

The Iranian president referred to the extensive sanctions faced by his country and said the pressures had entered a more dangerous phase in recent months following what he described as military aggression by the United States and Israel.

He said the experience had demonstrated that economic security could not be separated from national and regional security.

“Whenever the trade, energy, infrastructure, or financial system of a country comes under political or military pressure, its effect extends beyond that country's borders and can affect regional stability and even the global one,” Pezeshkian said.

He called for greater integration of trade infrastructure within BRICS, including digitalised customs procedures, reduced regulatory and administrative barriers, development of cross-border markets and facilitation of joint private-sector investment.

Pezeshkian also called for the New Development Bank to become a principal financing engine for infrastructure and energy projects in BRICS member countries. He proposed dedicated credit lines, local-currency financing and guarantee instruments to attract private capital.

He further proposed a BRICS joint reinsurance company with initial capital of USD 10 billion to cover major infrastructure and energy projects and strengthen private-sector confidence.

Pezeshkian also pitched a greater role for BRICS in artificial intelligence, saying the bloc should not merely remain a consumer of technology but participate in knowledge production and in shaping standards for the digital economy.

He called for stronger cybersecurity measures to protect critical infrastructure and said BRICS should develop technological capabilities alongside its economic cooperation.

“The question is, what is BRICS' response to these challenges? We believe that the true strength of BRICS is not confined merely to the size of its members' economies; rather, it becomes more apparent when these capacities are transformed into a network of trade, investment, and joint financing,” he said.

Pezeshkian said Iran, with its geographical position and energy resources, was prepared to serve as an important link in BRICS energy, food and transport supply chains.

He said the BRICS Business Council should also evolve from a forum for dialogue into an executive engine of economic cooperation, with measurable targets for growth in intra-BRICS trade, the share of national currencies in trade and the amount of private capital mobilised.

“We believe that BRICS will become a real force in the global economy when our cooperation is reflected in contracts, factories, ports, and the economic lives of the people of member countries,” he said.

Pezeshkian is in New Delhi to attend the two-day BRICS Summit beginning Saturday, 12 September.

With PTI inputs