BRICS Summit: Iran's President pushes for de-dollarisation of trade

Iranian President Masoud Pezeshkian, at the BRICS Summit in New Delhi, pushed for de-dollarisation of trade. He urged using local currencies and creating mechanisms to guard against volatility to reduce dependence on Western financial systems.

At the Leaders' Session of the BRICS Business Forum on the sidelines of the 18th BRICS Summit in New Delhi, Iranian President Masoud Pezeshkian pitched for de-dollarisation of trade within the bloc. Calling for reducing dependence on Western financial systems, Pezeshkian said BRICS nations should increase the use of local currencies in bilateral trade and put in place mechanisms to guard against currency volatility.

He said over-reliance on a few dominant currencies makes non-Western economies vulnerable to sanctions, trade restrictions and banking curbs. "One of the most important steps is to expand the use of national currencies in trade among the members. This step must be accompanied by the establishment of the necessary instruments for managing currency risks and reciprocal settlements," Pezeshkian stated.

Strategic Proposals to Shield BRICS Economies

To counteract Western financial leverage and lower trade barriers, Pezeshkian outlined several strategic proposals aimed at shielding BRICS economies from external political pressures.

Enhancing Role of New Development Bank

He also called for a bigger role for the New Development Bank (NDB) in financing infrastructure and energy projects across BRICS economies, including through local-currency financing and guarantees aimed at attracting private capital. “In order to transform trade cooperation into real investment, the New Development Bank must become the principal engine for financing infrastructure and energy in member countries through dedicated credit lines, financing in local currencies and guarantee instruments for attracting private capital,” Pezeshkian said.

Integrating Trade and Digital Infrastructure

The Iranian President said BRICS should move beyond fragmented cooperation and work towards integrating trade infrastructure, including through digitalisation and integration of customs procedures, trade facilitation, lower regulatory barriers and the development of cross-border markets.

Boosting Economic Security and Cooperation

He also proposed establishing a BRICS joint reinsurance company with an initial capital of USD 10 billion to cover risks associated with major infrastructure and energy projects and boost private-sector confidence.

Pezeshkian said BRICS must also strengthen cooperation in standardisation and develop joint industrial production and value chains, while using the grouping's energy, food and transport capabilities to improve economic security.

He further urged BRICS to play a greater role in the digital economy amid the rise of artificial intelligence, saying the grouping should contribute to knowledge production, shape digital-economy standards and strengthen cybersecurity.

Pezeshkian's remarks came as Prime Minister Narendra Modi and the Iranian President held a bilateral meeting on the sidelines of the 18th BRICS Summit in New Delhi on Friday. The two leaders had earlier addressed the BRICS Business Forum alongside Russian President Vladimir Putin and South African President Cyril Ramaphosa. (ANI)

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