FameEX Hot Topics | Iran Suggests Connecting All BRICS Payment Systems

Nasser Kanani, the spokesperson for the Ministry of Foreign Affairs of the Islamic Republic of Iran, has proposed a significant initiative to link the payment systems of all BRICS bloc countries to facilitate seamless settlements using national currencies. This proposal includes the nations of Brazil, Russia, India, China, South Africa, along with new additions Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates.

During a press conference, Kanani emphasized the strategic timing for such integration, given the current geopolitical shifts. He highlighted the successful recent integration of the Russian and Iranian payment systems as a model that could be expanded to include the entire BRICS bloc. “The necessary conditions have been created to transfer trade payments to national currencies," Kanani explained. He revealed ongoing discussions with Russia about extending this mechanism to all BRICS countries.

Kanani indicated that the Russian response to this proposal was positive, suggesting a shared interest in reducing reliance on dominant global currencies like the U.S. dollar and enhancing economic sovereignty. However, realizing this comprehensive integration would require extensive cooperation and support from all member countries.

The practical aspects of this proposal are already taking shape with the integration of Russia's Mir and Iran's Shetab payment systems. This collaboration is set to allow joint settlements and ATM withdrawals using cards from both countries, with the initial phase expected to be operational by next August. Such mechanisms represent the type of economic interconnectivity Iran envisions for the BRICS bloc.

This movement towards using national currencies for international transactions was further supported last month when the foreign ministers of the BRICS nations collectively advocated for enhancing the use of national currencies in trade and financial transactions. This declaration aligns with Iran's vision for a more interconnected and economically independent BRICS community, underscoring the bloc's commitment to forging a new path in global financial interactions that could reshape international economic relations.

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