Pezeshkian calls for BRICS financial mechanisms to offset sanctions
Iranian President Masoud Pezeshkian called on BRICS members on Friday to expand the use of national currencies and build joint financial mechanisms to make their economies more resilient to sanctions and political pressure, saying the group must turn its economic weight into practical cooperation.
Speaking at the BRICS Business Forum in New Delhi, Pezeshkian said geopolitical uncertainty, disrupted supply chains and the growing use of economic tools for political pressure had made the global business environment more difficult.
He said BRICS’ strength should not be measured only by the size of its economies, but by its ability to turn its economic capacity into networks of trade, investment and joint financing.
Pezeshkian said economic resilience required diversification of trade partners, financing sources and payment channels.
Referring to sanctions on Iran and the military aggression of the United States and Israel, the president said economic security could not be separated from national and regional security.
He urged BRICS to build resilient economic mechanisms that would prevent any country from disrupting another member’s legitimate trade by monopolizing a financial or technological tool.
“One priority should be greater use of national currencies in trade between members, supported by mechanisms to manage foreign-exchange risks and enable mutual settlement,” he said, calling for the New Development Bank to provide special credit lines, local-currency financing and guarantees to attract private investment into infrastructure and energy projects.
Pezeshkian proposed establishing a joint BRICS reinsurance company with initial capital of $10 billion to cover risks associated with major infrastructure and energy projects and help attract private investment.
He also called for stronger cooperation on trade, investment and customs procedures, including digitalizing and integrating customs processes, reducing regulatory barriers and facilitating cross-border investment.
Pezeshkian said BRICS should strengthen cooperation on standards so that the grouping could move beyond trading raw materials towards joint production and value chains.
“Iran could play a strategic role in BRICS energy, food and transport supply chains because of its geographic position and energy resources,” he said.
Pezeshkian also called for greater cooperation on artificial intelligence and the digital economy, saying BRICS should not merely consume technology but should help produce knowledge and shape digital-economy standards while strengthening cybersecurity.
He said the BRICS Business Council should become an “executive engine of economic cooperation” rather than remain a forum for dialogue. Its working groups, he said, should set measurable targets for intra-BRICS trade, the use of national currencies and private investment.
“BRICS’ power will become more evident when it moves from potential cooperation to operational cooperation,” Pezeshkian said.
The comments came ahead of the 18th BRICS Leaders’ Summit, which India will host in New Delhi on Sept. 12-13 under the theme “Inclusive Global Governance and Strengthening Multilateralism.”. The summit is expected to focus on trade, investment, global governance, technology, food and energy security and financial cooperation.
BRICS finance ministers and central bank governors have also called for stronger cross-border payment systems and greater interoperability between member countries’ payment mechanisms in a statement issued ahead of the summit.
The expanded BRICS grouping includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia and the United Arab Emirates.