CBI stresses more financial ties, less reliance on dollar in BRICS
Deputy Governor of the Central Bank of Iran (CBI) for international affairs, during a virtual meeting of BRICS member states, outlined the CBI’s policies regarding the development of financial cooperation with the member countries, defining the shared goal of the countries as reducing reliance on the dollar in trade transactions and increasing the use of local currencies.
During a live video conference at the third meeting of the financial deputies of the central banks of BRICS member countries in Brazil’s Rio de Janeiro on Wednesday, Mohsen Karimi emphasized the necessity of utilizing local currencies in trade transactions among the member states.
He stated that “reducing reliance on the US dollar and increasing the use of local currencies in economic and trade exchanges, as well as implementing a multilateral financial settlement scheme among BRICS members, and employing fast and secure banking data exchange channels independent of SWIFT, have all been underscored by BRICS members.”
In the meeting, Karimi emphasized that issues related to the notion of BRICS Bridge project, the multilateral financial settlement mechanism, and the rapid and secure banking data exchange channels independent of SWIFT for BRICS members are significant for them.
The deputy governor of CBI said that problems such as insufficient transparency, high costs, slow transaction speeds, and lack of equitable access to cross-border payment channels for all participants are primary reasons for the importance of the “BRICS Bridge.”
The creation of the BRICS Bridge will help increase mutual trade between the member countries, Russian Federation Council Speaker Valentina Matviyenko said earlier in the month.
Describing BRICS Bridge, the deputy governor of the CBI also said that the mechanism provides an opportunity for participating countries to implement Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) procedures within their jurisdictions.
Karimi added that the potential of the BRICS Anti-Money Laundering and Counter-Terrorism Financing Council can be enhanced, and through this initiative, member countries can benefit from relevant international standards and recommendations, eliminating the need to rely on the suggestions of certain institutions that are based on biased assessments.
Regarding the operational model, the BRICS Bridge should consider the basket of national currencies of the member states, emphasizing the use of national currencies and moving away from the dollar and euro, with settlements to be conducted within the platform.
Karimi noted that Iran has practical experience and with a precise definition of the selected model and the advancement of several similar global models, it is expected that the plan will be implemented in a relatively short time frame given the importance and urgency of the BRICS Bridge.