Iran Seeks Common BRICS Currency Amid US Sanctions
Iranian President Masoud Pezeshkian has called for the implementation of a common currency within the BRICS (Brazil, Russia, India, China, and South Africa) alliance. The push comes as Iran faces extensive US sanctions, while the US has imposed tariffs on BRICS nations.
Pezeshkian believes that using the BRICS financial architecture could help reduce countries' dependence on the US dollar. He views this move as essential to counter what he describes as 'US efforts to maintain financial dominance.'
The RBI (Reserve Bank of India) has recommended connecting Central Bank Digital Currencies (CBDCs), including the e-rupee, e-CNY, digital ruble, and Brazil's Drex. This would allow transactions between countries in their national currencies, processed instantly using distributed-ledger and smart-contract technology.
The proposal aims to reduce exposure to dollar volatility for oil-importing countries like India, as well as secure faster export payments and fewer certification hurdles.