Iran Proposes $10 Billion BRICS Reinsurance Fund
Iranian President Masoud Pezeshkian proposed a $10 billion joint reinsurance company for BRICS members. The aim is to reduce reliance on the US dollar in trade and infrastructure financing.
Iran has proposed the creation of a joint BRICS reinsurance company with initial capital of $10 billion. President Masoud Pezeshkian presented this plan on Friday in New Delhi. The fund is designed to cover risks for major infrastructure and energy projects. It seeks to increase private-sector confidence in non-Western financial systems.
The proposal forms part of a broader push to expand the use of national currencies in trade. Pezeshkian argued that the current financial system is vulnerable due to concentration in a limited number of currencies. He called for mechanisms to manage currency risks effectively. These measures aim to shield member states from political shocks in global markets.
Shift Toward Operational Cooperation
Pezeshkian urged BRICS members to move from potential cooperation to operational cooperation. He emphasized the need for integrated trade infrastructure. This includes digitalization of customs procedures and removal of regulatory barriers. The goal is to facilitate joint private-sector investment across member states.
The Iranian president highlighted the need for diversification in trade partners and financing sources. He stated that economic resilience requires diverse payment mechanisms. The current geopolitical environment has made supply chains more complex. BRICS must develop tools to prevent disruption of legitimate trade.
Strengthening The New Development Bank
Pezeshkian proposed expanding the role of the New Development Bank. The institution should become a major source of financing for infrastructure. He suggested special credit lines and local-currency financing options. Guarantees are needed to attract private investment into regional projects.
The focus is on moving beyond raw-material trade. BRICS aims to build integrated value chains. Joint industrial production is a key component of this strategy. Standardization cooperation is essential to achieve this industrial shift.
Energy And Food Security Pillars
Pezeshkian described food and energy security as fundamental pillars of economic security. Iran positions itself as a strategic partner in these sectors. The country possesses major energy reserves and a strategic geographic location. It offers access to energy and transportation supply chains.
The Iranian leadership links economic security directly to national security. They argue that political-military pressure on trade affects the global economy. The recent tensions have highlighted this interdependence. BRICS cooperation aims to mitigate these broader regional impacts.
