Iran Eyes New Development Bank Membership as BRICS Pushes Local Currency Trade

Iran is expected to join the New Development Bank (NDB), the multilateral lender established by BRICS nations, as Tehran seeks stronger financial ties with emerging economies and alternative channels outside the U.S. dollar-dominated system.

Central bank governor Abdolnaser Hemmati said Iran would soon become a member of the NDB, according to a state media report published ahead of a BRICS finance meeting in India. However, the bank’s corporate communications division told Reuters it could not confirm Iran’s prospective membership.

Iran officially joined BRICS in 2024 during the group’s expansion and has since expressed interest in becoming an NDB member and shareholder. Membership could provide Tehran with greater access to development financing at a time when the country remains subject to extensive U.S. and international sanctions.

The New Development Bank was founded in 2015 by Brazil, Russia, India, China and South Africa. Designed as an alternative source of financing for emerging economies, the institution focuses primarily on infrastructure and sustainable development projects. Its membership has expanded beyond the original BRICS countries to include economies such as the United Arab Emirates and Egypt. Uzbekistan became the bank’s 10th member on June 5.

Hemmati described the NDB as one of the most significant achievements of cooperation among BRICS countries and said Iran expects to become a member soon.

The Iranian central bank chief is attending the first meeting of BRICS finance ministers and central bank governorshosted by India, which holds the group’s rotating chairmanship this year.

Iran’s potential NDB membership also comes as BRICS countries explore ways to reduce their dependence on the U.S. dollar in international trade. Members have increasingly promoted settlements and financial transactions using national currencies.

Hemmati said Iran supports expanding trade between BRICS economies through local currencies. Tehran is also pursuing bilateral and trilateral monetary arrangements with other members to strengthen financial cooperation.

According to the NDB, membership is open to United Nations member states and can include both borrowing and non-borrowing countries.