BRICS Nations Expand Trade in Local Currencies: Iran Advocates for Reducing Dollar Dependency
BRICS nations are taking bold steps to boost trade in their national currencies, with Iran emphasizing this strategy as essential to reducing reliance on the U.S. dollar and countering the economic effects of sanctions.
Looking For Blockchain Developers? Hire us : DigiCodeGlobal IT Services
Iran Urges Financial Independence Through Local Currencies
On January 22, Iran’s supreme leader, Ayatollah Ali Khamenei, stressed the importance of adopting national currencies in BRICS transactions to combat dollar dependence. In a statement released by his press service, Khamenei stated:
“One of our challenges is the reliance on the dollar. The financial framework of BRICS and transactions between BRICS nations in local currencies will undoubtedly help address this issue.”
He further emphasized the need for self-reliance in the face of sanctions:
“A nation under sanctions must focus more on its internal capabilities and utilize them for its objectives.”
The BRICS bloc, which now includes 10 member states—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the UAE, and Indonesia—continues to drive efforts to strengthen economic cooperation and reduce dollar dominance.
A Global Movement Toward De-dollarization
BRICS is not alone in its pursuit of financial independence. Other coalitions, such as the Association of Southeast Asian Nations (ASEAN), are also exploring ways to reduce dollar dependency in international trade. These initiatives reflect a broader global trend aimed at diversifying currency usage to mitigate risks associated with overreliance on the U.S. dollar.
Sanctions imposed by the U.S. on countries like Russia and Iran have further accelerated these efforts. By adopting alternative currencies and financial systems, nations are bypassing economic restrictions and achieving greater financial autonomy.
Progress in BRICS Currency Framework
The trend toward de-dollarization within BRICS is gaining traction. Last November, Russian Foreign Minister Sergey Lavrov highlighted that 65% of trade among BRICS member states was conducted in national currencies. This milestone demonstrates significant progress in reducing reliance on the dollar for bilateral and multilateral trade.
Looking For Blockchain Developers? Hire us : DigiCodeGlobal IT Services
By fostering trade in local currencies, BRICS is working to establish a more balanced and resilient global financial system, one that reduces vulnerabilities associated with dollar-dominated trade and sanctions.
Conclusion: Toward a Multipolar Financial System
The growing push for local currency trade within BRICS and other international coalitions marks a pivotal shift in global financial dynamics. As nations like Iran continue to champion this transition, the move toward de-dollarization is poised to reshape the global economic landscape, empowering countries to achieve greater financial sovereignty and resilience.
