Iran to Join BRICS Bank Soon

Iran is set to join the BRICS New Development Bank, according to the country's central bank governor Abdolnaser Hemmati. This move is part of Tehran's efforts to strengthen its economic alliances amid sanctions and conflict with the US and Israel.

The New Development Bank was established in 2015 by Brazil, Russia, India, China, and South Africa to finance infrastructure and sustainable development projects. Iran joined BRICS in 2024, and its membership in the bank is seen as a key step in deepening economic ties among emerging economies.

Abdolnaser Hemmati, governor of the Central Bank of Iran, announced Iran's intention to join the BRICS Bank ahead of a BRICS finance meeting in India. He stated that the most important result of cooperation among BRICS member countries is the establishment of the New Development Bank, and that Iran will soon become a member of this bank.

BRICS members have sought to reduce their reliance on the US dollar by promoting trade and financial transactions in national currencies. Iran is seeking bilateral and trilateral monetary cooperation with other BRICS members, according to Hemmati.

## Why it matters Iran's membership in the New Development Bank is significant, as it will provide the country with access to alternative financial channels outside the dollar system. This is particularly important for Iran, which remains under sweeping US and international sanctions and has yet to reach a peace deal to end the current conflict with the US and Israel.

The BRICS Summit, scheduled to take place in New Delhi on September 12-13, will be attended by Iranian President Pezeshkian. India will host the 18th BRICS Summit, and Uzbekistan recently became the 10th member of the New Development Bank on June 5.

Iran's accession to the New Development Bank will make it eligible to seek financing for projects in areas such as transport, sanitation, digital infrastructure, and urban development. This will help the country address its development needs and reduce its reliance on Western financial institutions and markets.