FameEX Hot Topics | Iran Proposes Integration of All BRICS Payment Systems

Nasser Kanani, spokesperson for the Ministry of Foreign Affairs of the Islamic Republic of Iran, has unveiled a pivotal initiative aimed at linking the payment systems of all BRICS countries to enable seamless financial transactions using national currencies. This initiative is intended to include Brazil, Russia, India, China, South Africa, and recent additions such as Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

Speaking at a press conference, Kanani discussed the strategic significance of this integration in light of current geopolitical changes. He cited the recent successful integration of Russian and Iranian payment systems as a proof of concept that could be expanded across the entire BRICS bloc. "The necessary conditions have been created to transfer trade payments to national currencies," Kanani noted, revealing ongoing discussions with Russia to broaden this framework to all BRICS nations.

Kanani also conveyed a positive response from Russia, highlighting a mutual interest in diminishing dependence on dominant global currencies like the U.S. dollar and boosting economic sovereignty. However, he acknowledged that achieving such comprehensive integration would require robust cooperation and support from all BRICS members.

The practical steps towards this integration have already commenced with the collaboration between Russia's Mir and Iran's Shetab payment systems. This partnership is set to facilitate joint settlements and ATM withdrawals using cards from both countries, with the first phase expected to be operational by the following August. This type of economic connectivity is exactly what Iran envisions for the BRICS bloc.

Moreover, this shift towards using national currencies for international transactions received backing last month when the foreign ministers of the BRICS countries collectively supported enhancing the use of national currencies in trade and financial transactions. This collective endorsement aligns with Iran's vision for a more interconnected and economically independent BRICS community. It underscores the bloc's dedication to establishing a new trajectory in global financial interactions, potentially transforming international economic relations.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.