Iran to Join BRICS Development Bank as Tehran Seeks Alternative Financial Channels
Iran is expected to become part of the New Development Bank (NDB), the bank established by the BRICS alliance, as Iran aims to enhance its economic relations with developing nations while minimizing its reliance on Western financial systems.
This news was broken to the public by the Governor of the Central Bank of Iran, Abdolnaser Hemmati, in the country’s state media before the upcoming meeting of finance ministers and central bankers of BRICS countries taking place in India. According to Hemmati, the bank membership would soon be a reality for Iran, whose purpose will be promoting infrastructure projects and sustainable development in the participating countries.
The accession takes place amid tough sanctions imposed on Iran, along with the ongoing dispute between the country and the United States of America and Israel.
Those restrictions have limited Tehran’s access to international financial channels, increasing the importance of alternative mechanisms for trade, investment and payments.
Iran joined BRICS in 2024 during the bloc’s expansion and has since sought membership and shareholder status in the NDB. The bank was established in 2015 by Brazil, Russia, India, China and South Africa to provide financing for infrastructure and sustainable development. Its membership has since grown to include countries such as the United Arab Emirates and Egypt.
Hemmati said Iran sees the development bank as one of the most important outcomes of cooperation among BRICS members. He also called for greater monetary cooperation within the group, including bilateral and trilateral arrangements between member states.
The Iranian central bank chief said BRICS countries could expand trade using their national currencies, reflecting a wider effort among members to reduce reliance on the US dollar in international transactions. The issue of strengthening non-dollar payment channels has gained importance as BRICS members seek to deepen economic cooperation.
Iran’s move comes as the group continues discussions on financial connectivity. At a BRICS meeting in India, the Reserve Bank of India said members were discussing ways to link payment systems and central bank digital currencies, although those plans remain at an early stage.
For Tehran, joining the NDB could provide another avenue for economic engagement with major emerging economies while sanctions continue to constrain its access to Western financial institutions.
