Russia and Iran are collaborating on creating a single BRICS currency, the Iranian ambassador to Russia has claimed. He noted that over 60% of the two nations’ bilateral trade is conducted in Russian rubles and rials, reflecting a shift away from the U.S. dollar.
Russia and Iran Collaborating on Single BRICS Currency, Iranian Ambassador Says
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Russia-Iran Trade Flourishes With National Currencies
Iran and Russia are reportedly collaborating to establish a common currency for the BRICS economic bloc, Tass reported Thursday, quoting Iranian Ambassador to Russia Kazem Jalali.
Speaking at the “Russia – Islamic World: Kazan Forum 2024,” which is being held from May 14-19 in Kazan, the Iranian ambassador highlighted the cooperation between Iran and Russia to establish a single BRICS currency. The forum aims to enhance trade, economic, scientific, technical, social, and cultural ties between Russian regions and the Organization of Islamic Cooperation (OIC) countries and promote the development of Islamic financial institutions in Russia.
Jalali emphasized Iran’s active involvement in activities under Russia’s BRICS chairmanship, working towards a single currency for the association. As a new BRICS member, Iran is significantly contributing to this effort, he stated, elaborating:
The creation of a new single currency within the framework of the association is what Russia and Iran are working on.
He also mentioned that the U.S. uses the dollar to impose sanctions, leading to the increased use of national currencies in mutual settlements. “More than 60% of bilateral trade is in rubles and rials,” Jalali said, adding that relations between Russia and Iran are currently at a “golden stage.”
The BRICS economic bloc (Brazil, Russia, India, China, and South Africa) expanded its membership at last year’s leaders summit, inviting Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) to join. Many countries are now exploring settlements in national currencies instead of relying on the U.S. dollar. Critics warn that weaponizing the USD, such as by seizing Russian assets, could jeopardize its status as the world’s reserve currency.
Iran has consistently supported creating a common BRICS currency. At a BRICS meeting in January, Iran advocated for a unified currency, while Russia and China focused on settlements in local currencies. Critics argue that a BRICS common currency could threaten the dominance of the U.S. dollar. Rich Dad Poor Dad author Robert Kiyosaki, for example, recently warned that a BRICS digital currency launch could lead to the collapse of the U.S. dollar. The discussion of a common BRICS currency was widespread before the BRICS leaders summit in August last year, but it has since diminished.
Do you think the BRICS economic bloc will soon create a common currency? Let us know in the comments section below.
