Breaking Free From the Dollar: Iran Pushes BRICS Toward Financial Sovereignty

Countries worldwide are increasingly reducing their reliance on the U.S. dollar in international trade, signaling a significant shift in global financial dynamics.

As nations worldwide strive to reduce their reliance on the U.S. dollar in international trade, Iran is highlighting the critical role of BRICS in boosting trade in national currencies and countering the economic impact of sanctions.

BRICS members are now actively increasing the use of their national currencies in trade transactions. According to Russian Foreign Minister Sergey Lavrov, these transactions now account for 65% of total trade among BRICS countries.

In a statement published by his press service on Jan. 22, Khamenei noted the significance of this transition in addressing economic challenges faced by the nation.

“One of our challenges is the reliance on the dollar. The financial framework of BRICS and transactions between BRICS nations in local currencies will undoubtedly help address this issue,” Khamenei stated, adding that “a nation under sanctions must focus more on its internal capabilities and utilize them for its objectives.”

The BRICS economic bloc currently comprises 10 member states: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia.

Beyond BRICS, other international organizations, such as the Association of Southeast Asian Nations (ASEAN), are also exploring strategies to reduce dependency on the U.S. dollar. These efforts are part of a broader global initiative to diversify currency usage in international trade and minimize risks associated with overreliance on a single currency.

Countries like Russia and Iran have faced economic challenges due to sanctions imposed by the U.S., which have prompted them to accelerate efforts to reduce the dollar’s dominance in global trade. By adopting alternative currencies and financial frameworks, these nations aim to bypass the economic challenges posed by dollar-based sanctions and gain greater economic autonomy.