Iran’s Pezeshkian backs national-currency trade among BRICS members
BRICS leaders from 11 member states gathered in New Delhi on Saturday for a summit focused on trade, investment and global conflicts, hosted by Indian Prime Minister Narendra Modi. The meeting brings together Russian President Vladimir Putin, Chinese President Xi Jinping and Iranian President Masoud Pezeshkian alongside counterparts from other member states as the bloc seeks a larger role in shaping the global agenda for emerging and developing countries.
The summit convenes against a backdrop of wars in Ukraine and the Middle East and rising U.S.-China tensions, all of which test the bloc’s ability to find common ground among countries with competing geopolitical interests. Reducing reliance on the U.S. dollar and expanding trade in national currencies are among the stated priorities, alongside broader institutional reforms.
Thousands of police and paramilitary personnel were deployed around the summit venue and other parts of New Delhi, with traffic restrictions and diversions in place across the Indian capital.
BRICS was founded in 2006 by Brazil, Russia, India and China, with South Africa joining in 2010. The group has since expanded to 11 members, representing about half the world’s population and a significant share of global economic output. The bloc has increasingly called for greater representation of developing countries in global institutions.
Leaders are expected to discuss economic cooperation, energy, food security, technology, supply chains and reforms to global institutions. Reducing reliance on the U.S. dollar is also a stated priority, with members promoting greater use of their own currencies in trade and payments and pushing for alternatives to Western-dominated financial institutions. The broad trade-weighted U.S. dollar index stood at 118.0732 as of Friday, a vintage FRED measure of dollar strength that sets the cost of imports and the value of overseas earnings.
China and Russia see BRICS as a way to reduce Western dominance, particularly that of the United States, while strengthening cooperation among emerging and developing economies. Putin, in a speech at the BRICS Business Forum in New Delhi on Friday, said the grouping was not against anyone and that Moscow was open to cooperation with countries around the world. “We are in favor of our interests,” he said.
Iran has pushed for mechanisms that could reduce the bloc’s reliance on Western financial systems and shield members from economic pressure, as Tehran faces sweeping sanctions and a U.S. blockade. Pezeshkian, speaking to reporters on Friday, backed expanding trade in national currencies among BRICS members. “One of the most important steps is to expand the use of national currencies in trade among the members,” he said.
China is leveraging the grouping to deepen its influence within the bloc and position it as a counterweight to U.S. power. Chinese Foreign Ministry spokesperson Mao Ning said Friday that Xi was expected to discuss major international issues and ways to deepen cooperation among BRICS members.
For India, the summit highlights its effort to maintain strategic ties with Russia and Iran while deepening relations with the U.S. and Europe. New Delhi has sought to balance its longstanding partnerships with Moscow and Tehran with efforts to expand economic, defense and technology ties with Washington and other Western nations. India has maintained close ties with both Moscow and Tehran despite the war in Ukraine and tensions between Iran and the U.S., while calling for dialogue and diplomacy to resolve conflicts. Modi met Putin and Pezeshkian separately in New Delhi on Friday ahead of the summit.
India is also hoping the forum will help ease its longstanding strained ties with China. Modi and Xi are expected to hold talks later Saturday, a meeting that could help consolidate a diplomatic thaw between the two countries after border tensions escalated in 2020.
A key test for India will be whether it can secure a joint statement from leaders at the summit. Those divisions were evident in May, when BRICS foreign ministers failed to agree on a joint statement over the Iran war, forcing India to issue a chair’s summary instead.
The summit convenes as fears grow that the Iran war, triggered by U.S.-Israeli strikes on Feb. 28, may expand amid escalating tensions between Saudi Arabia and Yemen’s Houthi rebels. The bloc’s unity under pressure is expected to be tested as its members navigate differing positions on the conflict and relations with the U.S.