Iran’s BRICS membership will boost financial exchanges: Deputy FM

Iran’s membership in the BRICS group of emerging economies can make way for the improvement of trade ties and financial exchanges among the member states, says the Iranian deputy foreign minister for economic affairs.

“We enjoy very good relations with the five member states of BRICS, namely Brazil, Russia, India, China, and South Africa, and can expand trade and economic cooperation within its framework,” Mehdi Safari said on Friday.

The Iranian official said President of the New Development Bank (NDB) Dilma Rousseff would travel to Tehran in the near future to discuss Iran’s potential share, as a new BRICS member, in the bank and utilize its capacities to finance projects.

“This will be a positive and beneficial step,” the Iranian diplomat said.

The NDB is a multilateral development bank of BRICS established to mobilize resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).

Addressing the 15th BRICS Summit in Johannesburg on Thursday, South African President Cyril Ramaphosa announced that the member states agreed to admit Iran, Argentina, Egypt, Ethiopia, the United Arab Emirates and Saudi Arabia as new members from January 1, 2024.

BRICS has gained a special place in Iran’s foreign policy due to its increasing importance in the international political economy and geopolitical developments.

• BRICS membership enhances Iran's political power, Raeisi says

Although US financial sanctions make it difficult for Iran to access the resources of the NDB and the Contingent Reserve Arrangement (CRA), another key BRICS institution, the bloc has adopted various methods under its de-dollarization scheme to provide loans and services to members, which can reduce the impact of sanctions.

BRICS member states represent virtually 40% of the global population and a quarter of the world’s gross domestic product (GDP).

“Iran’s membership in the BRICS will promote multilateralism and strengthen Iran’s political, economic and trade power and will also weaken unilateralism,” Safari said.

The official said the issues of Iran’s scientific and technological progress, energy and the corridors connecting North to South and East to West via Iran are important for the BRICS members.

“Iran plays a determining role in ensuring security of the Persian Gulf and the Sea of Oman,” the Iranian official said.

Experts see BRICS as a viable counterweight to the G-7, a powerful US-led political forum that also includes Canada, France, Germany, Italy, Japan, and Britain.

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