Iran to Join BRICS New Development Bank in Challenge to US
Iran is reportedly set to join the BRICS New Development Bank (NDB). The Governor of the Central Bank of Iran made the announcement on Thursday local time.
The BRICS alliance is an acronym for Brazil, Russia, India, China, and South Africa. The first four countries joined in 2006, while South Africa became a member in 2010. Since then, BRICS membership has expanded with the inclusion of Iran, Egypt, Ethiopia, Saudi Arabia, the United Arab Emirates (UAE), and Indonesia. Several other countries have joined as partners, such as Belarus, Cuba, and Nigeria.
Central Bank of Iran Governor Abdolnasser Hemmati stated that Iran’s accession would be officially carried out in September. Iran will be in India to attend preparations ahead of the BRICS summit next month. “We are working to establish bilateral and trilateral monetary cooperation with member countries,” Hemmati said, according to a Tasnim report.
The NDB was established by BRICS to help mobilise resources for infrastructure and sustainable development projects in developing countries and emerging markets. Before joining, Iran must first go through the NDB accession process before it can become a full member. Currently, the countries with NDB prospective member status are Uruguay, Colombia, Ethiopia, Angola, and Zimbabwe. Joining the bank would give Iran the opportunity to obtain financing for various projects, including in the fields of transport, sanitation, digital infrastructure, and urban development.
Western sanctions against Iran, which have lasted for years, have severely limited the country’s access to international capital, especially from financial institutions and markets in Western countries. The war with the US and Israel, which broke out on 28 February, has further exacerbated the pressure on Iran’s economy. According to IMF data, Iran’s inflation soared 87.9% year-on-year in July 2026. The same agency predicts the country’s economy will contract by 5.4% this year with a nominal GDP of around US$300.3 billion.
Meanwhile, an NDB spokesperson could not confirm the information regarding Iran’s membership. However, the NDB emphasised that membership is open to all member states of the United Nations. “The bank’s membership is open to both borrowing and non-borrowing member countries,” the spokesperson said. “The NDB recently welcomed Uzbekistan as its 10th member country, which officially joined the bank on 5 June 2026,” they stressed.
Previously, US President Donald Trump consistently referred to BRICS policies as “anti-American”. He threatened to impose a 25% tariff on goods imported by the US from any country that directly or indirectly purchases goods or services from Iran. According to Kpler data cited by Reuters, China is Iran’s largest trading partner, based on the latest World Bank data. In 2025, China purchased more than 80% of Iran’s oil shipped by sea.