Iran Set to Join BRICS Bank as Tehran Seeks Financial Alternatives

Iran says it will soon join the New Development Bank (NDB), the development lender created by BRICS. Central Bank Governor Abdolnaser Hemmati made the announcement ahead of a BRICS finance meeting in India. The move comes as Tehran faces U.S. and international sanctions and looks for alternatives to dollar-based financial channels. However, the NDB has not yet confirmed Iran’s membership, meaning Tehran’s announcement has not become a formal accession.

The NDB was founded in 2015 by Brazil, Russia, India, China and South Africa to finance infrastructure and sustainable development projects. Its membership has since expanded to 10 countries, with Uzbekistan becoming the latest member on June 5, 2026. The bank’s official list does not currently include Iran and names Uruguay, Colombia, Ethiopia, Angola and Zimbabwe as prospective members.

War and Sanctions Strain Iran’s Economy as China Keeps Crucial Trade Flowing

Iran’s economic struggles have deepened as the conflict with the United States and Israel adds pressure to an already fragile economy. According to the World Bank’s latest data, Iran had recorded 2.8% negative GDP growth and 42.2% inflation in 2025. The worsening conditions have strengthened Tehran’s need for alternative financing and trade channels. In addition, U.S. sanctions have limited Iran’s access to Western markets and financial institutions. As a result, Tehran has increasingly relied on economic partners outside the Western financial system. The push for alternative financing has therefore become an important part of Iran’s effort to keep trade and investment moving despite growing economic pressure.

China has remained a crucial economic lifeline for Iran, particularly through energy trade. Kpler data showed that China had bought about 1.4 million barrels of Iranian oil per day in 2025, while a U.S. government commission said China accounted for as much as 90% of Iran’s crude oil purchases. However, the relationship has extended beyond oil. According to the U.S.-China Economic and Security Review Commission, China is Iran’s largest trading partner and has continued broader trade despite restrictions on Tehran. This has given Iran an important channel for exports and commercial activity as banking, payment and insurance services have become harder to access. In an increasingly divided global economy, China has become one of Iran’s most important economic connections beyond the Western system.

Iran Seeks BRICS Financing as Sanctions Limit Financial Options

Iran joined BRICS in 2024 as the group expanded to strengthen economic ties among emerging economies. Since then, Tehran has sought a larger role in the bloc’s financial institutions, including the NDB. However, Iran has not yet appeared on the NDB’s official member list. The difference is important because Iran’s central bank governor, Abdolnaser Hemmati, has said that Tehran will soon join the NDB. However, the bank has not confirmed Iran’s accession, leaving the timing and status of any membership uncertain.

For Tehran, access to alternative financing has become more important as sanctions have restricted Iran’s links to global financial channels. In addition, high inflation, weak economic growth and a falling currency have added to the pressure on the Iranian economy. Hemmati has also supported greater trade in national currencies and bilateral or trilateral monetary cooperation among BRICS countries. If Iran completes the NDB admission process, membership could provide another source of financing for transport, sanitation and digital infrastructure projects. For Tehran, the NDB push is therefore about more than development finance. It is part of a broader effort to keep trade flowing while reducing its exposure to Western financial pressure.

Web Resources on Iran Set to Join BRICS Bank

1. Reuters : Iran to join BRICS development bank soon.
2. The Times Of Israel : Iran to join BRICS development bank soon, central bank governor says.
3. Global Banking and Finance : Iran to Join BRICS Development Bank Soon, Central Bank Chief Confirms.