The New Development Bank (NDB) can assist Iran in bypassing sanctions. Experts believe that utilizing the financial capacities of this bank can reduce Iran's dependence on the dollar-dominated financial network, although it does not mean the complete ineffectiveness of U.S. sanctions.
Role of the New Development Bank
The New Development Bank is one of the important financial institutions of this group, established to finance development projects of member countries and emerging economies. Iran's name is not on the official list of members of this bank, but Iranian officials have announced efforts to secure Tehran's membership in this institution.
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One proposed way for Iran is to increase the use of national currencies in trade among BRICS member countries. This could allow countries to conduct part of their trade without relying on the dollar and U.S.-dominated banks.
Development of Cross-Border Payments
In recent BRICS financial meetings, there has been an emphasis on the development of cross-border payments and the use of national currencies. Strengthening the New Development Bank and increasing the capacity to finance projects with local currencies are also on the agenda of this group.
U.S. sanctions are not limited to dollar transfers and can impact banks, companies, shipping, insurance, commodity trade, and financial institutions that cooperate with Iran. Therefore, even if part of the transactions is conducted with local currencies, trading partners may still be exposed to the risks of U.S. secondary sanctions.
This issue is particularly significant in the current context, as the U.S. continues to exert pressure on financial networks related to Iran. The U.S. Treasury Department emphasized in September 2026 the importance of working with financial institutions to limit Iran's access to international financial resources and channels.
Potential Benefits of Iran's Membership in the NDB
If Iran joins the New Development Bank and conditions for practical cooperation are established, the most significant benefit could be financing for infrastructure and development projects. The New Development Bank is fundamentally a development bank, and its resources are used to finance projects in member countries. Therefore, it should not be equated with a commercial bank or a payment network that aims to eliminate all of Iran's banking restrictions.
BRICS is also developing cross-border payment mechanisms and connecting members' payment infrastructures. Iran has proposed creating an independent financial route within BRICS and connecting national payment networks. Even if Iran can utilize BRICS financial routes, the success of this mechanism depends on the level of cooperation from other countries.
BRICS itself is a collection of diverse economies with independent interests and policies, and establishing a fully integrated financial system among its members will be a time-consuming process.
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