Iranian President Masoud Pezeshkian has urged BRICS members to expand the use of national currencies in trade, saying the bloc needs stronger financial mechanisms to protect its economies from political and financial shocks.
Pezeshkian made the call at the ongoing BRICS summit, where he also urged the New Development Bank to play a bigger role in financing infrastructure and energy projects across member countries.
“Distinguished participants, one of the most important steps is to expand the use of national currencies in trade among the members,” Pezeshkian said.
He said greater use of national currencies should be supported by mechanisms for managing currency risks and facilitating reciprocal settlements.
According to the Iranian President, the current international financial system remains vulnerable to political shocks because it is concentrated around a limited number of currencies.
“This step must be accompanied by the establishment of the necessary instruments for managing currency risks and reciprocal settlements,” he said.
Pezeshkian also called for greater use of the New Development Bank to turn BRICS trade cooperation into investment and development.
“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,” he said.
He proposed dedicated credit lines, local-currency financing and guarantee instruments to attract private capital into projects across BRICS member states.
The remarks come as BRICS members intensify discussions on expanding local-currency trade and developing alternative cross-border payment mechanisms.
Finance ministers and central bank governors from the bloc have also supported measures aimed at improving cross-border payments and expanding local-currency financing through the New Development Bank.
BRICS was originally formed by Brazil, Russia, India and China before South Africa joined.
The bloc has since expanded to 11 full members, including Iran, Egypt, Ethiopia, the United Arab Emirates, Saudi Arabia and Indonesia.
The group has increasingly focused on strengthening economic cooperation among emerging economies and reforming aspects of the global financial system.
The founding BRICS countries established the New Development Bank to finance infrastructure and sustainable development projects in member countries.
Pezeshkian’s proposal comes amid broader efforts within BRICS to develop more efficient cross-border payment systems and reduce dependence on existing financial channels.
However, members have differing views on how far the bloc should go in reducing reliance on the US dollar. Russia has said it is not seeking outright “de-dollarisation” but remains open to alternative payment methods.
