Senior officials from the BRICS nations have significantly ramped up efforts to shift away from reliance on the US dollar by expanding trade in local currencies, according to a recent statement from an Iranian central bank official on February 26.
BRICS nations are increasingly exploring alternatives to the US dollar as a means to reduce their exposure to Western financial sanctions and to bolster their economic independence, particularly in response to the foreign policy strategies employed by the US under the leadership of President Donald Trump, whose aggressive tariff policies and maximum pressure campaigns on various countries have driven many BRICS members to seek greater financial sovereignty.
Discussing these developments in an interview with Tasnim, a news outlet aligned with Iran’s Revolutionary Guard, the deputy governor of Iran’s Central Bank (CBI) Asghar Abolhassani highlighted that the BRICS nations are also working to strengthen their payment networks and foster deeper financial cooperation within the group.
Abolhassani pointed to the ongoing initiatives between Iran and Russia, where the two countries have already begun exchanging local currencies through the ACUMER payment system. This system, which mirrors the Belgian-based network, has been a critical step towards reducing reliance on traditional Western financial infrastructure. In mid-January, the central banks of Iran and Russia signed a joint action plan aimed at facilitating bilateral trade in national currencies, connecting their domestic financial messaging systems, and integrating their card payment networks.
At the BRICS Sherpas meeting held in Cape Town on February 25-26, in conjunction with the G20 summit under Brazil’s presidency, Abolhassani presented Iran’s vision for further promoting local currency settlements within the bloc. He advocated for the complete rollout of Iran’s alternative financial messaging system to replace SWIFT, a unified merger of payment systems across BRICS countries, and the exploration of Central Bank Digital Currencies (CBDCs).
These discussions follow agreements made at a meeting of BRICS central bank governors in Moscow in May 2024, where members agreed on the importance of settling trade in national currencies. Iran also proposed the establishment of a unified currency for the bloc.
Abolhassani emphasized the need for the creation of an “independent financial body” within BRICS, arguing that the bloc’s growing economic weight warrants the establishment of institutional mechanisms to support its ongoing expansion. He also proposed the creation of a non-banking development institution within BRICS to leverage the expertise of member nations to address economic and financial challenges. This institution, he suggested, could play a vital role in offering policy recommendations and fostering technical cooperation among BRICS members.
Abolhassani concluded that the adoption of these strategic initiatives would transform the international monetary and financial system, ultimately deepening the financial, banking, and trade relationships within the BRICS group. His statements were echoed by Mostafa Ghamari Vafa, a spokesperson for Iran’s Central Bank, who confirmed the progress towards implementing national currency trade solutions, developing a domestic alternative to SWIFT, and exploring the potential of CBDCs.
The BRICS meeting, which followed the Moscow gathering of central bank governors, aimed to advance the practical steps needed to develop more efficient and cohesive monetary and banking relations within the bloc. Abolhassani noted that achieving these goals would represent a significant step towards enhancing the global influence of BRICS.
