Iran Joins BRICS Bank to Bypass Dollar
11 September 2026- WANA News
WANA (Sep 11) – Iran is on the verge of joining the New Development Bank (NDB) of BRICS, a move that could expand the country’s access to infrastructure financing, boost the use of local currencies and reduce its reliance on the dollar-dominated global financial system.
Iranian President Masoud Pezeshkian, speaking before departing for India to attend the 18th BRICS Summit, highlighted the potential of the bloc’s development bank, saying it was established to facilitate investment among member states and enable economic interactions without dependence on the US dollar.
The 18th BRICS Summit is being held in New Delhi on September 12 and 13, with discussions focusing on the bloc’s Economic Strategy 2030, strengthening supply chains, expanding cross-border digital payments and increasing trade in local currencies.
BRICS was established in 2009 by Brazil, Russia, India and China, with South Africa joining in 2010. Iran officially became a BRICS member in January 2024. The group currently has 11 full members and 10 BRICS Plus partners.
The New Development Bank was established in Shanghai in July 2015 by the five founding BRICS members. Its main purpose is to finance infrastructure and sustainable development projects in emerging economies, without conditioning its loans on political or economic reforms.
According to the latest official figures, the bank had approved 141 projects worth a combined $44 billion by the end of June 2026. Following Uzbekistan’s admission in June, the bank’s membership rose to 10 countries, extending its activities beyond the bloc’s original membership.
The bank has financed projects in areas including clean energy, rail transportation, water and sanitation, and urban infrastructure.
Why the BRICS Bank Matters to Iran
Iranian Economy and Finance Minister Seyed Ali Madanizadeh said greater use of local currencies and reduced reliance on the dollar and Western currencies were particularly important for Iran under sanctions.
He said expanding the use of local currencies and developing payment systems independent of Western mechanisms could become one of the most important benefits of BRICS membership for Iran, helping address economic challenges and facilitate international trade.
For Iran, one of the key potential benefits of joining the NDB would be access to infrastructure financing outside dollar-based mechanisms. The use of local currencies in trade with BRICS members could also allow Iran to conduct a larger share of its transactions with countries such as China, Russia and India without routing payments through the US banking system.
The development of independent payment and financial messaging systems is another area of cooperation within BRICS. Such mechanisms could provide alternative channels for cross-border financial transfers and help Iran maintain international transactions despite Western financial restrictions.
Iranian Central Bank Governor Abdolnaser Hemmati also announced on August 12, 2026 that Iran would soon join the New Development Bank. He described the establishment of the NDB as one of the most important outcomes of cooperation among BRICS members.
Hemmati also called for expanded monetary and banking cooperation among BRICS members, greater trade in local currencies and reduced dependence on the dollar. He said Iran was ready to pursue bilateral and trilateral monetary cooperation with other members of the bloc.
Expanding Local-Currency Trade
No comprehensive official data has been published on the share of Iran’s trade with BRICS members settled in local currencies. Russia, however, is among the most advanced examples in this area. Russia’s trade representative in Tehran has said that more than 90% of Russia’s transactions with BRICS members are conducted in local currencies, adding that Iran has also taken steps in this direction.
China remains Iran’s largest trading partner, with non-oil trade between the two countries reaching $13.8 billion, although the precise share of transactions settled in yuan is not publicly available.
The US government, meanwhile, has repeatedly viewed BRICS efforts to reduce dependence on the dollar as a challenge to the currency’s global position. US President Donald Trump has warned BRICS countries against supporting the creation of a new currency or using another currency to replace the dollar.
For Iran, which faces extensive financial sanctions, membership in the New Development Bank could therefore provide additional channels for infrastructure financing and international trade outside financial networks dominated by Western institutions, while strengthening the use of local currencies in its economic relations with BRICS members.
