Iranian President Proposes 10 Billion Dollar BRICS Reinsurance Fund

Iranian President Masoud Pezeshkian proposed a 10 billion dollar joint reinsurance company for BRICS infrastructure projects. The initiative aims to reduce reliance on Western financial systems and stabilize trade among member states.

At the Leaders' Session of the BRICS Business Forum in New Delhi, Pezeshkian urged member nations to increase the use of local currencies in bilateral trade. He argued that over-reliance on dominant Western currencies exposes non-Western economies to sanctions and banking curbs.

De-dollarization strategy for trade

Pezeshkian stated that expanding national currencies protects trade from political shocks. He called for mechanisms to manage currency risks and facilitate reciprocal settlements within the bloc. This approach is designed to shield BRICS economies from external political pressures and lower trade barriers.

The Iranian President emphasized the need to reduce dependence on Western financial systems. He noted that current reliance on a few dominant currencies creates vulnerability to sanctions and trade restrictions. The proposed shift seeks to create a more resilient financial framework for member states.

New Development Bank financing role

Pezeshkian urged the New Development Bank to become the principal engine for financing infrastructure and energy projects. He recommended dedicated credit lines and financing in local currencies to attract private capital. This strategy aims to transform trade cooperation into tangible investment across BRICS economies.

The proposal includes guarantee instruments to boost private-sector confidence in major projects. Pezeshkian highlighted the need for the bank to play a bigger role in supporting energy and infrastructure development. This move is intended to leverage the grouping's collective economic capabilities for greater security.

Joint reinsurance and digital standards

The proposed reinsurance company will cover risks associated with major infrastructure and energy projects. The initial capital allocation is set at 10 billion dollars. This mechanism is designed to mitigate financial risks and encourage broader private participation in BRICS initiatives.

Pezeshkian also called for BRICS to strengthen cooperation in standardization and joint industrial production. He urged the grouping to play a greater role in the digital economy and shape standards for artificial intelligence. According to GN markets/fx (en-US), these measures aim to improve economic security and integrate trade infrastructure through digitalization and customs reform.