Iran Accelerates Bid to Join BRICS Bank to Reduce Reliance on US Dollar

Iran has accelerated efforts to join the New Development Bank (NDB), commonly known as the BRICS Bank, as part of a broader strategy to reduce its dependence on the US dollar and the American-dominated global financial system.

According to international media reports, Iranian Central Bank Governor Abdolnaser Hemmati said Iran would soon become a member of the New Development Bank. He described the establishment of the bank as one of the most important outcomes of cooperation among BRICS member states.

Hemmati said trade among BRICS countries could increasingly be conducted in national currencies, potentially reducing reliance on the US dollar. He added that Iran was also exploring bilateral and trilateral financial cooperation with other BRICS members.

Hemmati made the remarks while attending a meeting of BRICS finance ministers and central bank governors in India.

Iran has been under extensive economic and financial sanctions imposed by the United States and other countries. Tehran has for years sought alternative financial and trade mechanisms that could reduce its dependence on the US-led financial system and the dollar.

According to Reuters, current US sanctions and the ongoing conflict involving Iran, the United States and Israel have increased Tehran’s need to find alternative sources of financing outside the dollar-based system. Joining the New Development Bank is being viewed as part of this wider strategy.

### What Is the BRICS Bank?

The New Development Bank was established in 2015 by Brazil, Russia, India, China and South Africa. Its primary objective is to finance infrastructure and sustainable development projects in developing and emerging economies.

The bank has gradually expanded its membership to include other emerging economies, including the United Arab Emirates and Egypt. Colombia and Uzbekistan were approved for membership in 2025, while Uzbekistan formally joined the bank in June 2026.

The NDB has increasingly emphasized financing in local currencies, which can help member countries reduce exchange-rate risks and limit their dependence on the US dollar.

### Iran’s Path Toward NDB Membership

Iran became a full BRICS member in 2024 and has since identified membership in the New Development Bank as one of its priorities.

In June 2025, then-Iranian Central Bank Governor Mohammad Reza Farzin reiterated Tehran’s interest in joining the bank during a meeting with NDB President Dilma Rousseff.

Russia also supported Iran’s NDB membership bid in May 2026. Russian Finance Minister Anton Siluanov said Moscow would consult other BRICS members to advance Iran’s membership and other initiatives within the bloc.

### Potential Benefits for Iran

Membership in the New Development Bank could provide Iran with an additional multilateral financing platform for development projects. It could also help Tehran promote the use of national currencies in trade and financial transactions with BRICS countries.

This could be particularly significant for Iran because US sanctions have restricted its access to international banking and dollar-based transactions.

While trading in national currencies and developing alternative payment mechanisms cannot completely eliminate the impact of sanctions, they could give Iran greater flexibility by diversifying its financial channels.

According to the Carnegie Endowment, the New Development Bank currently operates with capital of around $100 billion and has made financing in local currencies one of its key features.

### BRICS Efforts to Reduce Dollar Dominance

BRICS countries have increasingly promoted the use of national currencies for trade and payments in an effort to reduce the dominance of the US dollar in international commerce.

However, there is no complete consensus within the bloc on how this objective should be achieved. Indian Commerce Minister Piyush Goyal said this month that India does not support the creation of a new common BRICS currency.

The differing positions indicate that while BRICS members share an interest in reducing excessive dependence on the dollar, they have different views on the mechanisms required to achieve that goal.

For Iran, however, the issue has become increasingly important as Tehran seeks to cope with sanctions while expanding trade and financial cooperation with Russia, China, India and other emerging economies.