The BRICS New Development Bank and Its Feasibility in Confronting Iran’s Banking Sanctions

The BRICS New Development Bank and Its Feasibility in Confronting Iran’s Banking Sanctions
Article type: Research article
Authors: Laaya Joneidi, Jafar Nezam-olmolki
Journal: Business Research Quarterly (Pazhuheshname-ye Bazargani)
Volume: 29
Issue: 113
Date: Winter 1403 (2024–25)

About the article
This article examines the role and capacities of the BRICS New Development Bank (NDB) in alleviating the effects of banking sanctions on Iran and analyzes this institution as the most successful component of the BRICS mechanism. The authors show that the bank’s primary goal is to finance infrastructure and sustainable development projects in member states and other emerging economies and that it is regarded as a complement, not a substitute, for the World Bank.
The article emphasizes that, as BRICS expands its membership, assessing the NDB’s future global role becomes increasingly important. The bank enjoys advantages such as challenging the existing international financial structure, advancing BRICS’s transnational institution-building, using local currencies, and supporting clean-technology projects. At the same time, it faces challenges including political differences among members, the continued dominance of the dollar, and an unequal management structure.
Regarding Iran, the findings show that although the NDB has potential to strengthen Iran’s economic autonomy and reduce the impact of banking sanctions, current restrictions related to Iran’s status within the Financial Action Task Force (FATF) constitute a serious obstacle to effective cooperation with the bank.
In conclusion, the article offers policy recommendations for improving Iran’s engagement with the NDB, including institutional reforms, enhancing financial transparency mechanisms, and greater convergence with international standards.