Iran is anticipated to take a more active role in the global move away from the U S dollar as it prepares to join the BRICS bloc on January 1 next year. This shift is reflected in comments attributed to Kazem Jalali, Iran’s ambassador to Russia, in an interview with Nour News where he discusses what is described as a prime focus of policy and diplomacy in the region.
Jalali notes that the world is increasingly leaning toward dedollarization. Countries are promoting the use of their own currencies in trade and international organizations are exploring the creation of new settlement currencies for cross-border transactions. He adds that the idea is currently being seriously discussed within BRICS and is being watched closely by policymakers and economists alike.
The ambassador highlights progress in Iran and Russia, pointing out that a growing share of their bilateral trade is being conducted using national currencies. He cites that at present about sixty percent of Iranian-Russian commerce is settled in the rial and the ruble, a sign of real movement toward currency diversity in regional trade. This trend is part of a broader push toward reducing dependency on the dollar in Eurasian corridors and is seen as a strategic buffer against external shocks and policy shifts in major economies.
Historical steps taken by Moscow and Tehran support the current narrative. In 2022, Russian and Iranian banks announced arrangements favoring settlement in their respective currencies. This cooperation was described by various observers as a practical move to strengthen the ruble and to illustrate the feasibility of currency-based trade among partners. Economists suggest that such agreements can encourage other countries to consider similar paths, reinforcing a network of currency-based transactions that could gradually reshape regional finance and payment systems.
In parallel, global financial markets have been watching currency dynamics with interest. The Financial Times reports that investors worldwide have been reducing their dollar exposure as they anticipate possible shifts in Federal Reserve policy. Several analysts argue that a sustained period of dollar depreciation could accompany a broader rebalancing of reserve currencies and investment flows. One market strategist, Michael Metcalfe, notes that the dollar has carried an unusually heavy weight for a long time, and its relative weakening could accelerate as investors recalibrate risk and opportunity in the years ahead.
Meanwhile, industry insiders in Russia and among their international partners caution that a complete, rapid abandonment of the dollar is unlikely. Market participants emphasize a gradual process guided by policy coordination, trade considerations, and the readiness of financial institutions to operate with alternative currencies. A senior banker associated with VEB.RF, speaking in a discussion with a former Russian finance official, described this transition as a long-term shift rather than a sudden rupture, underscoring the importance of stability and interoperability in new payment arrangements. The dialogue suggests a measured pace as nations weigh the benefits of dedollarization against potential disruption to existing trade networks and financial infrastructures.