Iran | Trade without dollars

What is the Islamic Republic of Iran seeking in the BRICS group? The recent war between Iran on the one hand and Israel and the USA on the other provided an explanation: The BRICS states condemned the attacks in a joint statement. "We express our deep concern about the military strikes directed against the Islamic Republic of Iran since June 13, 2025, which constitute a violation of international law and the Charter of the United Nations," reads the statement from the Brazilian Foreign Ministry. This support has been denied to Iran by Western states . They have even defended Israel's attacks – contrary to clear provisions of international law.

The BRICS states expressed concern about the attacks on Iranian nuclear facilities and declared that they violated the relevant resolutions of the International Atomic Energy Agency. "The BRICS states remain committed to promoting international peace and security, and to promoting diplomacy and peaceful dialogue as the only sustainable path to long-term stability in the region," the statement read.

But Iran also associates long-term strategic and, above all, economic interests with BRICS membership. Decision-makers in Tehran hope to cushion the chronic economic crisis, largely a result of decades of sanctions and widespread corruption, with the help of economically powerful, non-Western states . The Islamic Republic maintains particularly close relations with Russia and China, both founding members of BRICS, and even participates in joint military exercises.

China is one of the most important buyers of Iranian oil; both countries signed a 25-year cooperation pact on trade, economics, and transport in 2021; a 20-year strategic partnership was agreed with Russia in January . However, these agreements are no life insurance for Iran: In the war against Israel, neither Beijing nor Moscow have taken any concrete steps to support Iran.

Iran hopes for economic benefits

BRICS membership is expected to bring Iran primarily economic benefits. The economic crisis is weighing heavily on Iranians. According to official figures, around 33 percent of the population will be living below the poverty line in 2024, reported Turkish state broadcaster TRT Global; some sources estimate this figure to be over 50 percent. In addition, the youth unemployment rate is 19.4 percent; half of men between 25 and 40 years of age are unemployed and not actively looking for work. The country has fallen to 117th place in the world in terms of gross domestic product (GDP) per capita, far behind Turkey, which was comparable in size, population, and economic potential in the past.

The Iranian economy is one of the weakest among the BRICS members and is not expected to grow rapidly. Local media reports that bread prices have risen by 200 percent over the past year, and other essential goods such as water and housing have also seen sharp price increases.

Break the monopoly of the US dollar

So, there is a need for action. Above all, the Iranian government hopes that the BRICS group will help reduce the predominance of the US dollar in international trade , primarily through increased use of its own currencies in trade. There are even efforts to introduce a new, BRICS-wide currency, an idea supported by Brazilian President Luiz Inácio Lula da Silva. As early as 2023, then-Iranian President Ebrahim Raisi hinted that Iran's primary interest was in de-dollarizing trade.

Skeptics, however, say these ambitions are a distant prospect. A senior Iranian source dampened expectations of the practical outcomes as early as 2023, during talks on Iran's accession. Speaking to Amwaj.media, an anonymous source described BRICS membership as "an important achievement in terms of prestige" but with only limited "financial benefits."

Is the BRICS currency coming?

Creating a BRICS currency would require, among other things, a banking union, a fiscal union, and general macroeconomic convergence. Are all members ready for this? The dollar, long the world's most important reserve currency, is still used for more than 80 percent of global trade , and many experts doubt that a new BRICS reserve currency would be stable or reliable enough to be widely trusted in global transactions.

Iran has announced that it will send a delegation to Rio de Janeiro, as will Russia. It's quite possible that the summit will be dominated more by political issues such as national sovereignty than by the host's agenda: Brazil has its own, broader goals for the meeting. The government of President Luiz Inácio Lula da Silva hopes to consolidate the country's leadership position both within the BRICS and among the countries of the Global South.