Iranian President Masoud Pezeshkian said the BRICS New Development Bank was created to reduce countries' reliance on the US dollar and counter US dominance.
BRICS countries are exploring local-currency trade and cross-border payment mechanisms as alternatives to greater dependence on the dollar.
India has clarified that BRICS is not discussing the creation of a common currency or seeking to replace the US dollar with the yuan or rupee.
Iran's President Masoud Pezeshkian on Friday said the BRICS New Development Bank (NDB) was created to reduce countries' reliance on the US dollar and counter what he described as Washington's push for global dominance. He arrived in New Delhi to attend the BRICS Summit of Heads of State and Government.
Experts, while talking to PTI, also said that BRICS countries can strengthen trade in local currencies and facilitate cross-border investments by deepening financial markets, strengthening banking linkages and putting in place robust risk-management mechanisms.
What Did Iran's President Say About The BRICS Bank?
The New Development Bank, formerly referred to as the BRICS Development Bank, is a multilateral development bank established by the BRICS nations. NDB is a multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS) with the purpose of mobilising resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs). It aims to contribute to global growth and development.
Speaking ahead of his departure to India, the President said: The new BRICS bank was created to free countries from reliance on the dollar and to stand against America's push for dominance.
"Independence, solidarity, sustainability, resistance, and innovation are the slogans of the summit, and economic, financial, industrial, and trade issues will be discussed at this summit. Our presence at this summit is a good opportunity to meet and discuss with various officials, including those from China, Russia, Brazil, India, and other countries," Pezeshkian said further, as per ISNA.
How Could BRICS Reduce Reliance On The US Dollar?
Reducing the world’s reliance on the US dollar is likely to feature prominently at the 18th BRICS Summit, which India will host in New Delhi on September 12 and 13, 2026. In August, finance ministers and central bank governors from BRICS nations discussed ways to make cross-border payments easier while giving greater strength to national currencies.
During those discussions, officials presented a working framework for BRICS Pay, a blockchain-based digital payment system. BRICS leaders have also backed further work on a cross-border clearing platform and proposed developing “local currency trade corridors” involving newer BRICS+ members, including Egypt, Indonesia, Ethiopia, Bangladesh and the UAE.
Russia and Brazil called for stronger language on issues including de-dollarisation and monetary autonomy. They also argued against what they view as an imbalance in the global financial system, where the currency of a single country serves as the world's reserve currency.
However, India has made its position clear that BRICS is not discussing the creation of a common currency. It has also said the grouping is not seeking to replace the US dollar with another existing currency, such as the Chinese yuan or Indian rupee.
