BRICS; A new opportunity for Iran's economy or a parallel trade route?

BRICS; A new opportunity for Iran's economy or a parallel trade route?

Zahra Torbi, IRNA reporter

While less than three years have passed since Iran became a member of the BRICS group, the recent summit of this group in Delhi emphasized the development of economic cooperation, increasing the use of local currencies, facilitating cross-border payments and strengthening the resources of the new development bank; Capabilities that can create opportunities for the country's economy under the conditions of Iran's limited access to financial resources and difficulty in foreign exchange.

🔹 Piman Gurbani, economist and the former economic deputy of the central bank, looks at this issue from a different angle; According to him, the development of trade with the national currencies is attractive for the Iranian company when the economic operator can predict the value of the contract and its future revenues. Because if we assume that an Iranian company concludes a contract worth rubles or yuan, but if the time interval between the export and receiving the money is long, the fluctuation of the exchange rate can change the expected profit of the company. In such a situation, even if the money transfer is technically possible, the economic operator may still prefer dollars or euros or even an intermediary country.