Iran is set to join the BRICS New Development Bank (NDB) as announced by its central bank governor Abdolnaser Hemmati in a state media report.
Tehran’s Strategy of Deepening Financial Ties
Abdolnaser Hemmati, governor of the Central Bank of Iran, announced on August 13, 2026 that Iran is set to become a member of the New Development Bank, the multilateral lender established by BRICS nations.
The announcement came ahead of a BRICS finance ministers’ meeting in India, where Iran reiterated its support for trade in national currencies and alternative financing channels.
Iran formally joined BRICS in 2024 as part of the bloc’s expansion, alongside countries such as Egypt and the United Arab Emirates. Membership in the NDB represents a further integration into non‑Western financial systems, offering Tehran access to development loans and infrastructure financing.
Analysts note that the addition is symbolic in Iran’s defiance of Western sanctions, and practical in providing new avenues for capital inflows.
Reducing Reliance on Western-Dominated Institutions
Iran’s path to BRICS membership proves years of economic isolation and geopolitical maneuvering. Since the U.S. withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in 2018, Iran has faced renewed sanctions targeting its oil exports, banking sector, and access to international finance.
These sanctions severely restricted Iran’s ability to engage with Western institutions such as the IMF and World Bank.
In response, Tehran sought partners outside the Western sphere. It deepened ties with China through the 25‑year cooperation agreement signed in 2021, expanded trade with Russia, and pursued membership in regional blocs like the Shanghai Cooperation Organization.
Joining BRICS in 2024 was a culmination of these efforts, aligning Iran with major emerging economies that share an interest in reducing dependence on the U.S. dollar.
Membership in the NDB is the next logical step for Iran. It would provide access to financing for infrastructure, energy, and development projects—areas critical to sustaining growth under sanctions.
Iran’s membership in the NDB matters on multiple levels. To BRICS, Iran’s addition strengthens the bloc’s geopolitical reach into the Middle East, a region central to global energy markets.
It also enhances the bloc’s credibility as an alternative to Western‑dominated institutions. The inclusion of a sanctioned state demonstrates BRICS’ willingness to challenge the global financial order. For Iran, it provides a lifeline: access to financing channels that bypass the dollar and Western banks.
Geopolitically, Iran’s addition signals a realignment on how sanctioned states are increasingly seeking refuge in non‑Western blocs.
Russia, facing sanctions after the Ukraine war, has also leaned heavily on BRICS and the NDB. Iran’s inclusion strengthens this trend, creating a coalition of states that challenge Western dominance in finance.
Economically, Iran’s membership could facilitate trade in national currencies, reducing reliance on the dollar. This aligns with BRICS’ push for de‑dollarization. To global energy markets, Iran’s integration into BRICS could reshape trade flows, especially if oil transactions are increasingly denominated in yuan or other currencies.
What Does BRICS Do?
BRICS is a bloc of 11 major emerging markets and developing countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, United Arab Emirates.
Formed in the late 2000s, it has expanded to include countries like Iran, Egypt, and the UAE. The bloc represents a significant share of global GDP and population, positioning itself as a counterweight to Western institutions.
The New Development Bank (NDB), established in 2015 and headquartered in Shanghai, finances infrastructure and sustainable development projects in member states.
Its mission is to provide an alternative to the World Bank and IMF, focusing on emerging economies and promoting trade in local currencies. The NDB has funded projects ranging from renewable energy in South Africa to transportation infrastructure in India.
Governance is shared among BRICS members, with leadership rotating. Currently, the bank is led by former Brazilian president Dilma Rousseff.
The NDB’s emphasis on local currency financing is particularly relevant for Iran, which seeks to reduce reliance on the U.S. dollar.
Iran’s Sanctions and Workarounds
Iran remains under sweeping U.S. and international sanctions, particularly from the Office of Foreign Assets Control (OFAC). These sanctions target its oil exports, banking transactions, and access to Society for Worldwide Interbank Financial Telecommunication (SWIFT).
As a result, Iran has struggled to access global capital markets.
Despite this, Iran has developed workarounds. It has expanded barter trade, exchanging oil for goods with partners like China.
It has also promoted yuan‑denominated oil sales, deepening ties with Beijing. Moreover, Iran has explored crypto adoption, using blockchain technology to facilitate transactions outside traditional banking channels.
Joining the NDB symbolizes its strategy through accessing of financing via a non‑Western institution. Iran can bypass restrictions imposed by Western banks, providing capital, but also signaling defiance of sanctions.
Security of Financial Transactions in Iran
Iran’s financial system faces challenges due to the existing sanctions, including limited access to international clearing systems.
To address this, the government has invested in domestic payment infrastructures and digital platforms to maintain transaction security. The Central Bank of Iran has promoted local settlement systems and encouraged fintech innovation to reduce reliance on foreign intermediaries.
Digital finance has grown in Iran, with local payment apps and platforms facilitating transactions. Blockchain technology has also been explored as a means of enhancing security and bypassing sanctions. While these measures improve resilience, they remain vulnerable to isolation from global markets.
Comparisons with other sanctioned states highlight both strengths and weaknesses.
Russia, for example, has developed its own payment system (MIR) and expanded yuan‑denominated trade. Venezuela has experimented with crypto. Iran’s efforts are similar, but its financial system remains constrained by limited access to global liquidity.
To further strengthen its financial landscape, Iran must diversify its partnerships, expand digital finance adoption, and enhance regulatory transparency. Membership in the NDB provides access to development financing, but Iran must also build trust with investors by improving governance and compliance standards.
Expanding fintech solutions, promoting secure digital wallets, and integrating blockchain technology could help Iran modernize its financial system while reducing exposure to sanctions.
Regional cooperation is also critical. Through deepened ties with BRICS, the Shanghai Cooperation Organization, and neighboring states, Iran can create a network of financial partnerships that reduce reliance on Western institutions.
To conclude, Iran’s financial resilience will depend on its ability to balance innovation with transparency. Without credible governance, investors may remain wary. With stronger institutions, Iran could leverage its membership in the NDB to attract capital and sustain growth.
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