BRICS and the Shanghai Cooperation Organization are discussing a shift away from the dollar toward using national currencies for trade. In an interview with RIA News, Mehdi Safari, Iran’s Deputy Foreign Minister for Economic Diplomacy, shared this viewpoint.
Safari suggested that a single currency could eventually emerge for settlements within BRICS, but until then, transactions should be conducted using the currencies of the participating nations. He emphasized that both BRICS and the SCO should pursue a path of de-dollarization to reduce dependence on the U.S. dollar for international commerce.
One proposed mechanism to make this transition practical is the creation of a BRICS development framework that uses a fund composed of multiple currencies. From this pool, a new single settlement currency might be adopted. This approach would enable member countries to access bank loans and engage in cross-border trade more efficiently, sidestepping the need to rely solely on the dollar.
Iran plans to participate in future discussions about de-dollarization efforts within BRICS starting in 2024, signaling continued interest in broader reform of international finance. Russia has also moved to reduce its exposure to dollars and euros in foreign trade, reporting a noticeable decline in the use of these currencies in recent exchanges.
Previously, Russian Foreign Minister Sergei Lavrov noted growing interest from more than thirty countries in joining BRICS as partners, highlighting the bloc’s expanding influence and its potential to reshape global economic dynamics. At the heart of these conversations is the idea that multi-currency arrangements could offer more stable and diversified avenues for financing, trade, and development across emerging markets.