Iran pushes for local currencies alternative payment systems to counter sanctions in BRICS summit

Iran pushes for local currencies, alternative payment systems to counter sanctions in BRICS summit

TEHRAN- The Minister of Economic Affairs and Finance, referring to the holding of the Second Meeting of Economy Ministers and Central Bank Governors of BRICS member countries, said: "The use of local currencies, the development of payment systems and domestic financial messengers, and increased economic coordination among BRICS members were among the most important topics raised at this meeting."

According to a report by IRNA from the Ministry of Economy, Seyed Ali Madanizadeh, who traveled to India to attend the BRICS meeting, stating that the final statement of the Second Meeting of Economy Ministers and Central Bank Governors of BRICS member countries was approved by consensus, stated: "Important topics were raised at this meeting, and all countries agreed on the provisions of the final statement."

He added: "One of the most important topics discussed was the use of local currencies, increased economic coordination and cooperation, and also the utilization of payment systems and domestic messaging systems within the BRICS framework."

The Minister of Economic Affairs and Finance expressed hope that the conclusions of this meeting would be fruitful for all countries in the region, especially the Islamic Republic of Iran, and continued: "One of the important achievements of BRICS is joint cooperation in the field of development and investment, which is in a way defining a new pole in the world's financial and economic systems."

Madanizadeh, referring to BRICS' capacities in the field of investment, said: "These cooperations can play a significant role in attracting investment, especially in the infrastructure sector."

He also considered the greater use of local currencies and reducing dependence on the dollar and Western countries' currencies as among the important topics raised and clarified: "This issue is especially important for our country, which is under sanctions conditions, and can help solve economic problems by using local currencies and utilizing the capacities of the international payment system."

The Minister of Economy emphasized: "This issue will be one of the very important achievements for our country, and it was also emphasized in the negotiations conducted during the trips to Russia and India."

Emphasis on north-south corridor capacity

Madanizadeh, in continuation, referring to the negotiations conducted during the trips to Russia and India, stated: "In these negotiations, great emphasis was placed on the capacity of the North-South Corridor, because the cost of moving goods through this route will be very low, and for this reason, various countries are interested in using this capacity."

He added: "Within the country, great efforts have been made to complete this corridor, and significant costs have been incurred. Also, neighboring countries, especially Russia, are investing in this field."

The Minister of Economic Affairs and Finance expressed hope that with the completion of the North-South Corridor, great developments will occur in the field of transit and movement of goods through Iran, and the country's capacity in this area will be utilized more than ever.

Strengthening BRICS financial cooperation and expanding New Development Bank membership

The Central Bank of the Islamic Republic of Iran, at the Second Meeting of Finance Ministers and Central Bank Governors of BRICS, called for greater focus of the BRICS financial path on operational projects, especially the development of cross-border payment solutions, interconnection of fast payment systems, cooperation in the field of central bank digital currencies, and increasing the interoperability of financial messaging systems.

According to a report by IRNA from the Central Bank, at this meeting, the positions of the Central Bank of the Islamic Republic of Iran were explained, and while supporting the joint statement of the meeting, emphasis was placed on the necessity of strengthening financial and economic cooperation among BRICS members under conditions of increasing geopolitical tensions, fragmentation of the global economy, and intensification of financial vulnerabilities.

It is worth mentioning that Abolfazl Koodei, Deputy for International Relations of the Central Bank, attended the Second Meeting of Finance Ministers and Central Bank Governors of BRICS in Mumbai online on behalf of the Central Bank of the Islamic Republic of Iran.

At this meeting, referring to the importance of expanding the membership of the New Development Bank, emphasis was placed on facilitating and accelerating the review of membership requests of new countries, in accordance with the bank's established procedures.

Also, the Central Bank considered the reform of the quota structure and governance system of the International Monetary Fund necessary and called for increasing the share and role of emerging economies and developing countries in the decision-making of this institution.

Greater focus of the BRICS financial path on operational projects, especially the development of cross-border payment solutions, interconnection of fast payment systems, cooperation in the field of central bank digital currencies, and increasing the interoperability of financial messaging systems were among the other requests raised by the Central Bank at this meeting.

It is worth noting that at this meeting, the development of trade and investment settlement with national currencies, as well as strengthening technical cooperation of central banks in the field of financial technologies, cybersecurity, and capacity building, were mentioned as other future priorities of BRICS financial cooperation.

In the end, the Central Bank announced its readiness for constructive participation in deepening practical, inclusive, and mutual-interest-based financial cooperation among BRICS members.

MA

source: tehrantimes.com