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Iran is pushing for a dedicated BRICS ‘financial corridor’ linking national payment systems and expanding the use of local currencies, as Tehran presses the bloc to cut transaction costs and reduce reliance on financial channels outside the group.
Central Bank Governor Abdolnasser Hemmati raised the plan the BRICS financial meetings in Jaipur, India, earlier this week.
Hossein Kashiri, Director General of International Relations and Cooperation at the Central Bank of Iran, said on Sunday that the proposal would create a common framework for faster bilateral and multilateral trade.
"The financial corridor concept—proposed by the Governor of the Central Bank of Iran [Abdolnasser Hemmati] at the recent summit and welcomed by member states—is essentially a joint effort to create a common roadmap. Its goal is to reduce time and overhead costs and accelerate operational speed for both bilateral and multilateral trade among member countries," Kashiri said.
"All member countries have reached consensus on several key points, including: Eliminating redundant transaction costs tied to SWIFT and dollar-centric monetary and financial systems. As is well known, banking relations based on global currencies involve complexities that do not exist when dealing in local currencies," he added.
Iran's proposal centres on connecting national payment and settlement infrastructure rather than creating a single BRICS currency.
Kashiri described cross-border payment integration as the ‘backbone’ of the system, pointing to existing arrangements involving Iran, Russia and China.
He also said demand for local-currency settlement extended beyond those three countries, pointing to the Asian Clearing Union as an existing model.
"It is a concern for all countries seeking to optimise their exchange environment, eliminate redundant transactions, increase payment speeds, avoid the complexities of SWIFT, and transition into a clearing (netting) framework.”
By linking national banking systems and expanding settlement in local currencies, it could reduce members' reliance on the US dollar and SWIFT, potentially limiting the reach of Western financial sanctions and accelerating a shift towards a more multipolar global financial system.
BRICS has 11 members, including Iran, which joined as a full member in January 2024. The bloc has previously worked on local-currency settlement and payment connectivity through its Payment Task Force.
New route for BRICS money - Iran proposes linking national payment systems to speed trade and cut costs
Iran is pushing for a dedicated BRICS ‘financial corridor’ linking national payment systems and expanding the use of local currencies, as Tehran presses the bloc to cut transaction costs and reduce reliance on financial channels outside the group.
Central Bank Governor Abdolnasser Hemmati raised the plan the BRICS financial meetings in Jaipur, India, earlier this week.
Hossein Kashiri, Director General of International Relations and Cooperation at the Central Bank of Iran, said on Sunday that the proposal would create a common framework for faster bilateral and multilateral trade.
"The financial corridor concept—proposed by the Governor of the Central Bank of Iran [Abdolnasser Hemmati] at the recent summit and welcomed by member states—is essentially a joint effort to create a common roadmap. Its goal is to reduce time and overhead costs and accelerate operational speed for both bilateral and multilateral trade among member countries," Kashiri said.
"All member countries have reached consensus on several key points, including: Eliminating redundant transaction costs tied to SWIFT and dollar-centric monetary and financial systems. As is well known, banking relations based on global currencies involve complexities that do not exist when dealing in local currencies," he added.
Iran's proposal centres on connecting national payment and settlement infrastructure rather than creating a single BRICS currency.
Kashiri described cross-border payment integration as the ‘backbone’ of the system, pointing to existing arrangements involving Iran, Russia and China.
He also said demand for local-currency settlement extended beyond those three countries, pointing to the Asian Clearing Union as an existing model.
"It is a concern for all countries seeking to optimise their exchange environment, eliminate redundant transactions, increase payment speeds, avoid the complexities of SWIFT, and transition into a clearing (netting) framework.”
By linking national banking systems and expanding settlement in local currencies, it could reduce members' reliance on the US dollar and SWIFT, potentially limiting the reach of Western financial sanctions and accelerating a shift towards a more multipolar global financial system.
BRICS has 11 members, including Iran, which joined as a full member in January 2024. The bloc has previously worked on local-currency settlement and payment connectivity through its Payment Task Force.
Iran is pushing for a dedicated BRICS ‘financial corridor’ linking national payment systems and expanding the use of local currencies, as Tehran presses the bloc to cut transaction costs and reduce reliance on financial channels outside the group.
Central Bank Governor Abdolnasser Hemmati raised the plan the BRICS financial meetings in Jaipur, India, earlier this week.
Hossein Kashiri, Director General of International Relations and Cooperation at the Central Bank of Iran, said on Sunday that the proposal would create a common framework for faster bilateral and multilateral trade.
"The financial corridor concept—proposed by the Governor of the Central Bank of Iran [Abdolnasser Hemmati] at the recent summit and welcomed by member states—is essentially a joint effort to create a common roadmap. Its goal is to reduce time and overhead costs and accelerate operational speed for both bilateral and multilateral trade among member countries," Kashiri said.
"All member countries have reached consensus on several key points, including: Eliminating redundant transaction costs tied to SWIFT and dollar-centric monetary and financial systems. As is well known, banking relations based on global currencies involve complexities that do not exist when dealing in local currencies," he added.
Iran's proposal centres on connecting national payment and settlement infrastructure rather than creating a single BRICS currency.
Kashiri described cross-border payment integration as the ‘backbone’ of the system, pointing to existing arrangements involving Iran, Russia and China.
He also said demand for local-currency settlement extended beyond those three countries, pointing to the Asian Clearing Union as an existing model.
"It is a concern for all countries seeking to optimise their exchange environment, eliminate redundant transactions, increase payment speeds, avoid the complexities of SWIFT, and transition into a clearing (netting) framework.”
By linking national banking systems and expanding settlement in local currencies, it could reduce members' reliance on the US dollar and SWIFT, potentially limiting the reach of Western financial sanctions and accelerating a shift towards a more multipolar global financial system.
BRICS has 11 members, including Iran, which joined as a full member in January 2024. The bloc has previously worked on local-currency settlement and payment connectivity through its Payment Task Force.