Iran President Calls for Greater Use of Local Currencies to Counter Sanctions

Iranian President Masoud Pezeshkian has called for greater use of local currencies in international trade, saying closer financial cooperation among emerging economies could help countries reduce the impact of sanctions and strengthen economic integration. Pezeshkian made the remarks while discussing economic cooperation among BRICS countries, where reducing dependence on traditional international financial channels has become an increasingly important issue.

Iran has faced extensive US sanctions that have restricted its access to international banking and financial networks. Tehran has consequently been seeking alternative mechanisms to maintain trade with countries that remain willing to conduct business with it. Pezeshkian's proposal focuses on increasing settlements in national currencies instead of relying predominantly on the US dollar for cross-border transactions. Such arrangements could reduce exposure to sanctions-related restrictions and provide countries with additional options for conducting bilateral trade.

The Iranian president also stressed the importance of strengthening economic ties among BRICS members. Greater cooperation in trade, investment, banking and infrastructure, he argued, could help create a more integrated economic network among emerging economies. The issue has particular relevance for India-Iran economic relations. The two countries have maintained strategic and commercial ties despite the challenges created by international sanctions. India has also continued its engagement with Iran through projects such as the development of Chabahar Port, which is important for regional connectivity.

Bilateral trade has faced significant difficulties in recent years. Sanctions, payment restrictions and complications surrounding financial transactions have made it harder for companies in both countries to conduct business through conventional channels. The push for local-currency settlements is part of a wider discussion within BRICS about developing alternative financial mechanisms. Several member countries have expressed interest in expanding trade conducted in their national currencies and improving cross-border payment systems.

Analysts, however, note that wider adoption of local currencies would require practical arrangements involving banks, businesses and governments. Exchange-rate fluctuations, currency convertibility and differences in financial regulations could present challenges. For Iran, expanding local-currency trade could provide additional options for maintaining international commerce despite sanctions. For other BRICS members, it could offer greater flexibility in cross-border transactions and reduce reliance on a single dominant currency. Pezeshkian's remarks come as BRICS continues to explore ways to deepen economic cooperation among its members. The push for stronger financial links could become an important part of the group's broader efforts to increase trade and investment among emerging economies.

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