Iran Considers BRICS PAY to Replace SWIFT for Enhanced Trade

Iran considers adopting BRICS PAY to replace SWIFT for international financial transactions.
The move aims to boost trade relations with BRICS countries and reduce reliance on Western-centric systems.

In a significant strategic move, Iran is actively considering the adoption of “BRICS PAY,” the digital banking conduit of the BRICS consortium, as a replacement for the current SWIFT system. This revelation came from the Speaker of the Iranian Parliament, Mohammad Baqer Qalibaf, in light of Iran’s upcoming membership in the BRICS group of emerging economies.

During a public session in the Iranian parliament, Qalibaf announced that starting from January 1, 2024, Iran plans to use BRICS PAY to navigate the financial challenges previously posed by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). This transition presents a unique opportunity for Iran to enhance its business ties with the original BRICS members, including Brazil, Russia, India, China, and South Africa.

A Strategic Shift in Iran’s Financial Landscape

The invitation for Iran to join BRICS came on August 24 of the current year, as the bloc expanded to include six new members. This move followed Iran’s recent induction into the Shanghai Cooperation Organization (SCO), a powerful bloc led by heavyweight economies such as China, Russia, and India.

After a meeting with BRICS parliament speakers in South Africa, Qalibaf emphasized the potential benefits of BRICS PAY. Joining this banking framework would eliminate the need for access to SWIFT, a Belgium-based financial messaging system that had previously isolated Iran due to U.S. sanctions.

Qalibaf noted that the BRICS nations collectively account for a significant 30% share of Iran’s total trade portfolio. Therefore, the adoption of BRICS PAY has the potential to invigorate Iran’s efforts to expand and strengthen its global trade connections. He praised the introduction of this payment platform as a monumental step for BRICS, as it reduces dependence on Western-centric systems like SWIFT.

As described on the BRICS PAY website, this innovative system aims to enable businesses and consumers within the bloc and globally to securely and seamlessly make and receive payments in their local currencies. It also seeks to reduce the cost and complexity of international payments. This nuanced approach could redefine Iran’s financial landscape, opening the door to increased economic interactions on a global scale.