Iran's Strategic Move at the BRICS Summit
For the first time since officially joining the BRICS group in August 2023, Iranian President Masoud Pezeshkian is participating in the 16th BRICS summit in Kazan, Russia. This summit, themed "Strengthening Multilateralism for Fair Global Development and Security," sees Pezeshkian leading a high-level delegation that includes key ministers from Iran's economy and foreign affairs sectors. The Iranian president is scheduled to deliver three speeches and engage in bilateral discussions with leaders from Russia, China, India, and Egypt, focusing on enhancing bilateral relations and addressing regional tensions.
Political economy expert Peyman Yazdani emphasizes the political significance of this summit against the backdrop of escalating conflicts in the Middle East and beyond. He notes that BRICS leaders are expected to make crucial economic decisions to counter Western pressures that leverage financial institutions as tools of influence. Pezeshkian aims to advocate for peace in the Middle East, asserting that economic growth cannot be achieved through conflict.
Enhancing Economic Cooperation and Reducing Dollar Dependency
The BRICS summit presents a pivotal opportunity for Iran to strengthen its economic ties within the bloc, which represents nearly half of the global population. Yazdani suggests that Iran's full membership in BRICS is vital for its strategy to foster a multipolar world and mitigate the impacts of U.S. sanctions that restrict its access to global financial systems, particularly the SWIFT network.
Economic researcher Ali Mohammadi highlights the launch of BRICS Pay, a unified financial transfer system utilizing Blockchain technology, as a significant step towards reducing reliance on the U.S. dollar. This initiative aims to diminish Western financial institutions' influence and pave the way for a new economic order. Mohammadi anticipates that BRICS nations, including Iran, will work to enhance this remittance system, thereby challenging the dominance of the dollar in international transactions.
As the world shifts towards multipolarity, Mohammadi predicts that the U.S. may lose its status as the largest economy by 2050, with BRICS countries like China, India, and Russia rising in economic prominence. The establishment of a non-dollar payment system and a BRICS-specific bank could facilitate this transition, enabling member countries to escape the constraints imposed by Western financial systems.
