Iran Says Gold-Backed BRICS Currency Will Weaken US Dollar

In a recent statement from a country official, Iran says that a gold-backed BRICS currency will weaken the US dollar. Indeed, Russia announced last week that a BRICS trade currency backed by gold was in development. Nevertheless, that project is primed to aid the bloc’s de-dollarization focus. 

Rasoul Mousavi, an assistant foreign Minister of the country’s Ministry of Foreign Affairs, discussed the potential of the project. Specifically, he states that its implementation would cite, “a tremendous change” taking place in global economics. While also signifying the continued decline of the greenback. 

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Iran Sees De-Dollarization in BRICS Gold Currency

The upcoming BRICS summit is set to be a vital moment in the bloc’s history. The event will see the collective discuss initiatives that could alter the trajectory of the alliance forever. Among those is the long-discussed expansion of the bloc. Moreover, it is the recently announced currency that is being developed.

Now, Iran has spoken out about the project, stating that a gold-backed BRICS currency would weaken the US dollar. Subsequently, praising the development and its potential impact on the de-dollarization efforts that have been so embraced by the global south throughout the year. 

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Mousavi stated, “The BRICS’ introduction of a gold-backed currency, which is supported by 41 countries with large and influential economies, will weaken the dollar and the euro and will benefit countries such as Iran, while Iranians in possession of gold will experience a wealth increase.” 

The perspective of the Iranian official is not wrong. Especially if Iran does eventually join the bloc, it has long been listed as a candidate for expansion. However, the currency has yet to be officially announced by the bloc leading up to the summit. 

On the contrary, the BRICS New Development Bank has specifically expressed that it is not moving forward with a common currency. Last week, the bank’s chief financial officer, Leslie Maasdorp, expressed that as a “long-term goal.” Conversely, if a gold-backed BROCs trade currency is on the cards, it will likely be announced at the upcoming summit. Thus, continuing to establish the event as incredibly important for the economic alliance.