Iran Pushes for Unified BRICS Currency System to Undermine US Dollar
In a bold move, Iran has called for the establishment of a unified BRICS currency system aimed at weakening the dominance of the US dollar in global trade. The proposal was put forward by Nasser Kanani, the spokesperson for the Ministry of Foreign Affairs of the Islamic Republic of Iran. The initiative is part of a broader “de-dollarization” strategy, which seeks to link the payment systems of all BRICS nations into a singular, cohesive framework.
BRICS, a coalition of emerging economies including Brazil, Russia, India, China, and South Africa, has long discussed the potential for greater financial integration. Iran, facing severe economic sanctions from the United States, views a unified BRICS currency as a crucial step in circumventing these restrictions. Kanani emphasized that the groundwork for this ambitious plan has already been laid, pointing out that transactions within these countries are increasingly conducted using national currencies.
Russia has already signaled its support for this initiative. On July 6, the completion of work on integrating Russia’s Mir payment system with Iran’s Shetab marked a significant milestone. The two nations also signed an agreement to provide liquidity to their national currencies for commercial transactions, further solidifying their commitment to the cause.
The momentum for a unified BRICS currency is not limited to Iran and Russia. ASEAN nations are also exploring the possibility of launching a unified currency to rival the US dollar and the Euro. These collective efforts reflect a growing trend among emerging economies to seek alternatives to the US-dominated financial system.
However, achieving a unified BRICS payment system will require consensus and extensive negotiations among all member states. While Iran and Russia are spearheading the initiative with plans to establish a similar union by next August, the remaining BRICS members must reach a common agreement. The bloc is already making strides to reduce reliance on the US dollar through various measures, but the creation of a single currency could take considerable time and planning.
This vision for a unified BRICS currency underscores the shifting dynamics in the global economic landscape. With multiple countries looking to challenge the supremacy of the US dollar, the proposal from Iran could be a pivotal moment for the BRICS coalition. While the path to a singular currency is fraught with complexities, the drive to reconfigure the global financial system is clearly gaining traction.
Source: BBC
