Iran proposes creating an independent financial corridor within BRICS and integrating national payment systems. In this regard, countries agreed on Iran's accession to the BRICS New Development Bank.
Alexander Firanchuk, Senior Researcher of the International Trade Department at the Gaidar Institute, explained for Nezavisimaya Gazeta, why these actions do not demonstrate a uniform policy of the BRICS countries to drop the dollar.
The latest BRICS declaration, adopted in New Delhi, shows that countries pledged to expand the use of national currencies and the compatibility of payment systems, but at the same time, reserved the right to consider their own priorities. Therefore, according to Alexander Firanchuk, the BRICS members may move toward more independent settlements at different pace.
The main difference is related to sanctions pressure. For Russia and Iran, which are subject to US sanctions, finding alternatives to the dollar infrastructure has immediate practical significance. For other BRICS countries, the need for such a transition is much less clear.
"It is not about a uniform BRICS+ anti-dollar front. For most participants, the dollar remains the working tool of international settlements, and they are not interested to abandon it just to create a uniform system. Therefore, it is more about the possibility of supplementing the existing infrastructure with other channels," noted Alexander Firanchuk.
Another limitation is the risk of secondary sanctions. While integration of payment systems is technically possible, banks from BRICS countries may be reluctant to participate in an infrastructure that involves settlements with Russian and Iranian actors and potentially creates sanctions risks.
As a result, BRICS may see the emergence of not just one universal system, but several alternative settlement mechanisms. Their use, the expert believes, will depend on specific countries, banks, and trade directions.
Alexander Firanchuk also noted the historical scale of the ongoing changes: changing the dominant currency is a lengthy process. Therefore, even with the continued development of alternative channels, a rapid abandonment of the dollar is unlikely.