Push for De-Dollarization: Iran’s President Pezeshkian Calls for BRICS Economic Integration
New Delhi: Iranian President Masoud Pezeshkian, currently in New Delhi for the BRICS Summit, has issued a robust call for the bloc to overhaul its financial architecture. Addressing leaders, including Prime Minister Narendra Modi and Russian President Vladimir Putin, Pezeshkian urged member states to aggressively expand the use of national currencies in cross-border trade to insulate their economies from Western-led sanctions and geopolitical volatility.
Strengthening Economic Resilience
The Iranian leader framed the current international financial system as inherently biased, arguing that its concentration in a handful of currencies leaves nations vulnerable to “political shocks.” Amidst heightened tensions and ongoing conflict in West Asia, Pezeshkian contended that economic resilience is no longer a luxury but a necessity for nations facing external pressure.
“The current global financial model is susceptible to exploitation,” Pezeshkian stated during the BRICS business forum. He emphasized that the group must transition from being a mere forum for dialogue into an “executive engine” of cooperation. To achieve this, he proposed that the bloc prioritize the establishment of dedicated instruments for managing currency risks and facilitating reciprocal settlements, effectively bypassing traditional dollar-dominated channels.
A Strategic Shift in Infrastructure and Finance
President Pezeshkian’s proposal for integration extends beyond currency. He urged BRICS nations to move toward a unified trade infrastructure that includes the digitization of customs procedures and the alignment of regulatory frameworks. By harmonizing standards, he argued, the bloc could evolve from an exporter of raw materials into a cohesive network of value chains and joint industrial manufacturing.
Highlighting the importance of the New Development Bank (NDB), the Iranian President suggested it should serve as the primary catalyst for infrastructure projects within the Global South. He specifically called for the NDB to introduce credit lines denominated in local currencies and proposed the creation of a BRICS-led reinsurance entity, backed by an initial $10 billion in capital, to provide a safety net for large-scale energy and transport ventures.
Navigating Geopolitical Complexities
For India, the host of this year’s summit, Pezeshkian’s rhetoric presents a complex diplomatic balancing act. While New Delhi is eager to bolster economic ties and deepen cooperation with the Global South, it remains cautious about appearing to take sides in the escalating rivalry between BRICS nations and the West. With the US administration voicing concerns that the bloc’s de-dollarization efforts are designed to undermine the global standing of the greenback, India is navigating a narrow path that seeks regional growth without alienating traditional strategic partners.
Defiance Against External Pressure
Beyond the conference halls, President Pezeshkian struck a combative tone during a separate engagement with Indian academics and religious leaders. He characterized recent actions by the US and Israel as acts of “aggression” and “bullying,” asserting that Iran would not submit to economic or military coercion.
Reaffirming Tehran’s resolve, the President insisted that despite severe supply chain disruptions and attempts to cripple the Iranian economy, the nation would continue to support its strategic interests. As the BRICS summit progresses, Pezeshkian’s vision of an integrated, alternative economic ecosystem remains a central, albeit polarizing, topic of discussion among the attending heads of state.
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