3 weeks ago
India, Iran central bank chiefs hold talks on banking ties
There is a club of countries called BRICS that work together on money and trade.
The leaders of the central banks of two member countries, India and Iran, met to talk about working together.
Their meeting happened in Jaipur, India, during a big BRICS finance meeting.
The two leaders discussed how to make banking between their countries easier.
Iran also wants to join a special BRICS bank called the New Development Bank.
That bank helps countries pay for big projects like roads and bridges.
Iran wants to use other money instead of US dollars.
That is because America's rules, called sanctions, make it very hard for Iran to use dollars.
Government money experts from 11 countries are meeting for two days to talk about these money matters.
Central Bank of Iran Governor Dr Abdolnaser Hemmati met Reserve Bank of India (RBI) Governor Sanjay Malhotra on the sidelines of the BRICS Summit in Jaipur on Wednesday.
The two governors discussed international economic and financial developments and ways to strengthen monetary and banking cooperation between the two countries.
Iran plans to soon join the New Development Bank (NDB), the development lender established by the BRICS group of nations, Hemmati said.
The move is part of Iran's effort to find alternative payment channels to the US dollar as its economy faces US sanctions.
India is hosting the BRICS Finance Ministers and Central Bank Governors meeting in Jaipur from August 12 to 13 under its rotating BRICS chairship, with representatives from 11 member countries.
- Who
- Central Bank of Iran Governor Dr Abdolnaser Hemmati and Reserve Bank of India (RBI) Governor Sanjay Malhotra, alongside finance and central bank representatives from 11 BRICS member countries.
- What
- Talks on closer banking ties and monetary cooperation, including Iran's plan to join the New Development Bank (NDB).
- Where
- Jaipur, Rajasthan, India.
- When
- Wednesday, during the two-day BRICS Finance Ministers and Central Bank Governors meeting held August 12 to 13.
- Why
- To expand bilateral economic and banking cooperation and to help Iran find alternative payment channels to the US dollar amid US sanctions.
Key facts
- Event
- BRICS Finance Ministers and Central Bank Governors meeting
- Key participants
- RBI Governor Sanjay Malhotra and Central Bank of Iran Governor Dr Abdolnaser Hemmati
- Location
- Jaipur, Rajasthan, India
- Dates
- August 12-13 (two-day meeting)
- Attendees
- Representatives from 11 BRICS member countries
- Iran joined BRICS
- 2024
- New Development Bank founded
- 2015 by Brazil, Russia, India, China and South Africa
- NDB membership
- Includes the UAE, Egypt and other emerging economies
Quotes
Dr Abdolnaser Hemmati
Governor of the Central Bank of Iran
“"The most important result of cooperation among BRICS member countries is the establishment of the New Development Bank, and our country will soon become a member of this bank."”
thehansindia.com
Sources
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