Iran’s Pezeshkian pitches BRICS financial architecture to accelerate de-dollarisation

Iranian President Masoud Pezeshkian has called for greater use of the BRICS financial architecture to reduce member countries’ dependence on the US dollar, putting de-dollarisation at the centre of discussions ahead of the grouping’s summit in New Delhi.

According to Iran’s Islamic Republic News Agency (IRNA), Pezeshkian said the New Development Bank (NDB) was created to help countries move away from reliance on the dollar and counter what he described as US efforts to maintain financial dominance.

Pezeshkian’s remarks carry particular weight as Iran remains under extensive US sanctions and faces continued military tensions with Washington. For Tehran, expanding access to alternative financial channels could help reduce the impact of sanctions and provide greater scope for trade with BRICS partners.

Iran joined BRICS in 2024 and has increasingly viewed the grouping as a platform to deepen economic ties outside the US-led financial system. In August, Iran’s central bank governor said Tehran was preparing to join the NDB and wanted to expand trade using national currencies with BRICS members.

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The NDB, headquartered in Shanghai, was established in 2015 by the original BRICS members — Brazil, Russia, India, China and South Africa. Its mandate is to finance infrastructure and sustainable development projects in BRICS countries and other emerging and developing economies.

The bank has been positioned as a complement to existing multilateral lenders such as the World Bank and regional development institutions.

BRICS pushes local currencies and alternative payment mechanisms

De-dollarisation has become an increasingly prominent component of the wider BRICS economic agenda. Member countries have discussed expanding trade in national currencies and developing payment mechanisms that can reduce exposure to the dollar-dominated global financial system.

Pezeshkian’s pitch therefore aligns with a broader BRICS effort to increase the use of local currencies in cross-border trade and strengthen financial links among member economies.

However, the push faces practical challenges, including differences in financial systems, currency convertibility and the scale of trade conducted in local currencies. The US dollar also remains deeply embedded in global trade, banking and financial markets.

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Pezeshkian arrives in India for BRICS Summit

Pezeshkian is scheduled to arrive in New Delhi on Friday for the 18th BRICS Leaders’ Summit, his first trip to India as Iranian president and the first visit by an Iranian president to the country in more than eight years.

He is scheduled to meet Prime Minister Narendra Modi at Bharat Mandapam on Friday evening.

The September 12-13 summit comes against the backdrop of the Iran conflict, the war in Ukraine and intensifying US-China rivalry. Pezeshkian’s visit is also significant for India-Iran ties. Modi met Pezeshkian last month on the sidelines of the Shanghai Cooperation Organisation summit, where the two leaders discussed bilateral relations and the escalating West Asia conflict.

For Iran, the BRICS summit provides an opportunity to push for greater use of alternative financial channels at a time when access to the dollar-based system remains constrained by US sanctions.

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