Iran pushes BRICS financial corridor to reduce reliance on dollar, SWIFT

Iran is pushing for a dedicated BRICS “financial corridor” linking national payment systems and expanding the use of local currencies, as Tehran seeks to reduce transaction costs and reliance on financial channels outside the bloc.

Central Bank Governor Abdolnasser Hemmati presented the proposal during BRICS financial meetings in Jaipur, India, earlier this week.

Hossein Kashiri, Director General of International Relations and Cooperation at the Central Bank of Iran, said on Sunday that the initiative would establish a common framework to accelerate bilateral and multilateral trade among BRICS members.

“The financial corridor concept...is essentially a joint effort to create a common roadmap,” Kashiri said. “Its goal is to reduce time and overhead costs and accelerate operational speed.”

He said members had reached consensus on several areas, including reducing transaction costs associated with SWIFT and what he described as the “dollar-centric” international financial system.

Connecting national payment systems

Rather than creating a single BRICS currency, Iran’s proposal focuses on connecting members’ existing payment and settlement infrastructure and increasing the use of national currencies for cross-border transactions.

Kashiri described payment integration as the “backbone” of the proposed system, pointing to existing arrangements involving Iran, Russia and China.

According to Kashiri, such arrangements could “increase payment speeds, avoid the complexities of SWIFT, and transition into a clearing framework”.

Greater integration of national payment systems could reduce BRICS members’ exposure to the U.S. dollar and Western-controlled financial infrastructure. For Iran and Russia, both subject to extensive Western sanctions, developing alternative payment channels has become particularly important.

BRICS has expanded significantly in recent years and currently has 11 full members, including Iran, which joined in January 2024.

The bloc has increasingly explored ways to expand trade in national currencies and improve cross-border payment connectivity. However, BRICS members have not agreed to create a common currency, and efforts have instead focused largely on developing mechanisms that allow national financial systems to interact more directly.

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