Iranian President Masoud Pezeshkian on Friday urged Brics member states to increase the use of national currencies for trade and take steps for greater economic integration to overcome the impact of sanctions that has intensified in recent months.
Pezeshkian highlighted geopolitical uncertainty, supply chain disruptions and the “increasing use of economic instruments to exert political pressure” while addressing the leaders’ session of the Brics business forum alongside Prime Minister Narendra Modi, Russian President Vladimir Putin and South African President Cyril Ramaphosa.
India, the host of the Brics Summit, has had to walk a delicate line while working for enhanced economic cooperation within the bloc, including the use of national currencies, and avoiding the anger of US President Donald Trump, who has accused the grouping of attempting to undermine the dollar.
Deep Dive
Why does the Iranian President advocate for the use of local currencies among BRICS nations?
What mechanisms does Pezeshkian suggest to support trade without relying on major currencies?
How does Pezeshkian link economic security to regional stability in his statements?
Pezeshkian argued that Brics should respond to the geopolitical challenges by transforming the capacities of member states into a “network of trade, investment and joint financing” that will facilitate a “transition from potential cooperation to an operational one”. In this context, he called for enhancing the use of domestic currencies for trade.
“One of the most important steps is to expand the use of national currencies in trade among the members,” Pezeshkian said. This must be accompanied by the establishment of instruments for managing currency risks and reciprocal settlements since the “current financial system is vulnerable to political shocks due to its concentration in a limited number of currencies”, he said.
{{/usCountry}}“One of the most important steps is to expand the use of national currencies in trade among the members,” Pezeshkian said. This must be accompanied by the establishment of instruments for managing currency risks and reciprocal settlements since the “current financial system is vulnerable to political shocks due to its concentration in a limited number of currencies”, he said.
{{/usCountry}}Iran, which has faced extensive sanctions, believes economic resilience is not possible without diversifying trade partners, sources of financing, and payment channels, he said.
“However, in recent months, these pressures have entered a far more dangerous phase due to the military act of aggression by the US and the Israeli regime against Iran,” he pointed out.
“Whenever the trade, energy, infrastructure or financial system of a country comes under political or military pressure, its effects extend beyond that country’s borders and can affect regional stability and even the global one,” he said.
Pezeshkian proposed that Brics should create an environment in which “no country can disrupt the legitimate trade of another country through monopolising a financial instrument or technology” and said this can be done by ensuring resilient capacities for the economies of member states and the Global South.
“In order to increase intra-Brics trade, we must move from fragmented cooperation towards the gradual integration of trade infrastructure,” he said.
For this purpose, Brics members should work towards 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 said.
“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.
Food and energy security are fundamental pillars of economic security, and Iran, with its vast energy reserves and geographical position, is prepared to act as a strategic partner in Brics energy, food and transport supply chains, he added.
Pezeshkian proposed that the New Development Bank must become a “principal engine” for financing infrastructure and energy projects in Brics countries through dedicated credit lines, financing in local currencies and guarantee instruments for attracting private capital.
He further proposed a Brics joint reinsurance company with an initial capital of $10 billion to cover the risks of major infrastructure and energy projects and increase private sector confidence.
With artificial intelligence set to spur a fundamental transformation in the global economy, Brics should play a role in knowledge production and shaping the standards of the digital economy, while strengthening the cybersecurity of critical infrastructure, he said.
At the same time, 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.
Pezeshkian subsequently participated in a gathering of Indian academics, religious leaders and business people, where he mounted a more direct attack on Israel and the US. Citing Islamic scriptures, he said Iran is determined not to give in to the “bullying and oppression” of Israel and the US.
All religions, he Saudi, are based on the fight against bullying and oppression and say that governments should rule according to justice and the people’s rights and not sow discord, he said.
“But some have become tyrants and oppressors that trample on people’s rights. History has shown that bullies and oppressors were destroyed without exception,” Pezeshkian said. “Iran is standing up to Israel and the US because we will not be bullied. If they push us, we will push them back.”
Pezeshkian referred to Israel and the US, whose military strikes in February triggered the West Asia conflict, as “true terrorists” and noted that they had killed 168 children in a missile strike on a school.
“They should take on our soldiers instead of targeting hospitals, infrastructure and livelihoods,” he said. “They think people will surrender because of the lack of supplies but the people of Iran will not surrender.”
He added: “We will not surrender to oppression, we will keep supporting the oppressed.”
The gathering was also addressed by Shia and Hindu religious leaders and representatives of think tanks such as the Observer Research Foundation.