The new BRICS member Iran recently confirmed that it is working closely with Russia to launch a new currency. Iranian Ambassador to Russia, Kazem Jalali, said that the Islamic Republic is participating in initiatives that can help both countries to end reliance on the US dollar. The diplomat noted that creating a single currency within the framework of BRICS is currently being worked on.
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“The creation of a new single currency within the framework of the BRICS association is what Russia and Iran are working on,” the diplomat stated. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
He explained that Iran and Russia are successful in de-dollarization as majority of their trades are settled in local currencies. “More than 60% of bilateral trade is in rubles and rials,” he said. The Ambassador added that both the nations are at a “golden stage” in trade relations. The new currency, if implemented, could change the way how Russia Iran, and the BRICS alliance operate.
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New BRICS Currency on the Cards, Says Diplomat
The Iranian diplomat stressed that creating a new payment alternative to the US dollar is an important goal. He stated that BRICS does not want to settle trade in the US dollar but prefers their own currency. He hinted that the new currency could be linked to the blockchain and boast of digital technologies.
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“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,” he said.