- Iran explores transition from SWIFT to BRICS PAY, seeking to boost its international trade amidst economic challenges.
- The switch coincides with Iran’s forthcoming membership in the BRICS group, marking a notable shift in its economic alliances.
In light of its upcoming membership in the BRICS consortium of burgeoning economies, Iran is actively considering the adoption of the bloc’s digital banking conduit,
“BRICS PAY,”
to replace the currently utilized SWIFT system, as per the disclosure by the Speaker of the Parliament, Mohammad Baqer Qalibaf.
A Strategic Economic Maneuver
During a public session in the Iranian parliament, Qalibaf accentuated that starting January 1, 2024, Iran will commence utilization of BRICS PAY to navigate around the fiscal roadblocks engendered by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). This transition unfolds a grand opportunity for Iran to amplify its business liaisons with major nations, shedding light on the escalating trade activities between Iran and the original members of the BRICS coalition, namely Brazil, Russia, India, China, and South Africa.
On August 24 of the present year, the BRICS fraternity extended an invitation to Iran to join its ranks, in a historic move to incorporate six new members into its fold. This invitation followed closely on the heels of Iran’s induction into the Shanghai Cooperation Organization (SCO), an influential bloc steered by heavy-weight economies like China, Russia, and India.
Post a congregating with BRICS parliament speakers in South Africa, Qalibaf highlighted the prospective advantages of BRICS PAY. The incorporation into this banking structure would obviate the requisite access to SWIFT, a Belgium-domiciled financial messaging apparatus that had previously ostracized Iran owing to US sanctions.
The Speaker expounded that the BRICS nations contribute to a notable 30% share of Iran’s entire trade portfolio, and hence, BRICS PAY could significantly galvanize Iran’s endeavors to preserve and augment its global trade connections. He lauded the inception of this payment framework as a monumental stride for BRICS, as it diminishes reliance on Western-centric systems like SWIFT.
As delineated on the BRICS PAY website, this novel system is aimed at enabling enterprises and consumers within the bloc and globally
“to securely and seamlessly make and receive payments in their local currencies,”
attempting to
“reduce the cost and complexity of the international payments.”
This nuanced approach could potentially rewrite the financial narrative for Iran, paving the way for enhanced economic interactions on a global stage.
