FX.co ★ Under weight of Western restrictions, Iran finds independent sources of credit

Iran is preparing to formally join the New Development Bank (NDB) established by the BRICS countries, Iran’s central bank Governor Abdolnaser Hemmati said ahead of a meeting of the bloc’s finance ministers in India.

Subject to harsh international sanctions and engaged in a geopolitical confrontation with the United States and Israel, Tehran is desperately seeking alternative financing channels. Joining the NDB is expected to become a key tool for the country to operate outside the traditional dollar‑based system.

Iran became a BRICS member in 2024 amid the bloc’s large expansion and immediately signaled its intention to become a full shareholder in the bank. The New Development Bank was founded in 2015 by Brazil, Russia, India, China, and South Africa to finance infrastructure projects. Later, the alliance admitted the UAE, Egypt, and a number of other developing economies.

Abdolnaser Hemmati said Tehran intends to move all trade with BRICS countries to national currencies. The Iranian regulator is currently working on bilateral and trilateral currency agreements with bloc partners to minimize any dependence on the US dollar in cross-border transactions.