Iran's Pezeshkian calls for greater shift toward local currencies in BRICS trade

Iranian President Masoud Pezeshkian on Friday called for a stronger shift toward local currencies in BRICS trade, while pitching Iran's geography, energy resources and transport links as a strategic bridge for the bloc’s economic connectivity.

Speaking at the BRICS Business Forum, Pezeshkian said BRICS must move beyond its economic potential and build a more integrated network of trade, investment and joint financing.

He argued that greater use of national currencies, backed by mechanisms to manage currency risks and reciprocal settlements, would make intra-BRICS trade less vulnerable to political shocks.

Pezeshkian also positioned Iran as a potential link in BRICS energy, food and transport supply chains, citing its geographical location and energy reserves.

He called for deeper integration of trade infrastructure, including digitalised customs procedures, reduced regulatory barriers and stronger cross-border markets.

The Iranian president urged the New Development Bank to become a principal financing engine for BRICS infrastructure and energy projects, including through local-currency lending and guarantees capable of attracting private capital.

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

The Iranian President said the current financial system is vulnerable to political shocks due to its concentration on a limited number of currencies.

"One of the most important steps is to expand the use of national currencies in trade among the members," Pezeshkian said at the BRICS Business Forum.

The President is here to attend the two-day BRICS Summit, beginning Saturday.

He also said that 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.

The world is going through one of its most complex periods, with geopolitical uncertainty and disruptions in supply chains, and the increasing use of economic instruments to exert political pressure has made the economic environment in which countries operate more complex. 

"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, that is, a transition from potential cooperation to operational one," he said.

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

The Gulf country has faced extensive sanctions over the past years, he said, adding that in recent months, these pressures have entered a far more dangerous phase due to the military act of aggression by the United States and the Israeli regime.

"This act of aggression, in addition to its human and material losses, once again revealed an important reality. Economic security cannot 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," the President said.

By creating resilient capacities for the economies of its members and the Global South, BRICS must create an environment in which no country can disrupt the legitimate trade of another country through monopolising a financial instrument or technology, he added.

"In order to increase intra-BRICS trade, we must move from fragmented cooperation towards the gradual integration of trade infrastructure," he said.

In this regard, several measures are of particular importance, including digitalisation and integration of customs procedures and trade facilitation, reduction of regulatory and administrative barriers, development of cross-border markets, and facilitation of joint private-sector investment, he noted.

"We also propose strengthening cooperation in standardisation so that BRICS may evolve from a market for the exchange of raw materials into a network of value chains and joint industrial production," Pezeshkian said.

He also said that food and energy security are two fundamental pillars of economic security, and Iran, with its vast energy reserves and outstanding geographical position, is prepared to play the role of a strategic partner in BRICS energy, food, and transport supply chains.

About artificial intelligence, the President said BRICS should not merely be a consumer of technology, and it should play a role in knowledge production and in shaping the standards of the digital economy, while strengthening the cybersecurity of critical infrastructure.

He said that the BRICS Business Council must evolve from a forum for dialogue into an executive engine of economic cooperation. 

"Its specialised working groups must define specific and measurable projects based on clear indicators such as the rate of growth in intra-BRICS trade, the share of national currencies in trade, and the volume of private capital mobilised," he said, adding that Iran, with its outstanding geographical position and energy resources, is prepared to serve as one of the important links of BRICS economic connectivity. 

"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. 

BRICS, originally comprising Brazil, Russia, India, China and South Africa, expanded in 2024 to include Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia, with Indonesia joining in 2025.

Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam became BRICS partner countries last year.

The bloc emerged as an influential grouping, as it brings together 11 major emerging economies, representing around 49.5 per cent of the global population, around 40 per cent of global GDP and around 26 per cent of global trade.