The Chinese ambassador to Iran, Chang Hua, said that China supports Iran’s entry into the BRICS bloc. Iran has expressed its interest to join the BRICS alliance and accept the new currency for cross-border transactions. The next BRICS summit will be held in South Africa in August and the bloc will decide the expansion by inducting new countries into the group. Iran aims to enter BRICS and trade in the soon-to-be-released currency and end reliance on the U.S. dollar.

The U.S. has imposed several sanctions on Iran for sponsoring terrorism-related activities around the world. Therefore, Iran’s economy is struggling to cope with the sanctions and it is looking at alternative ways to revive its GDP.

China maintains positive relations with Iran by allowing the country to bypass sanctions and settle transactions in the Chinese Yuan. The Communist country is convincing developed nations to ditch the U.S. dollar and use local currencies for global trade. The Xi Jinping administration is advancing to put the Chinese Yuan ahead of the U.S. dollar for imports and exports.

Iran could revive its economy if the country gains entry into the BRICS alliance and trade in the new currency. The U.S. dollar will be sidelined giving either the Chinese Yuan or the new currency importance for cross-border remittance. The move would put the U.S. dollar under pressure as it would have lesser avenues to fund its deficit.

“China maintains positive relationships with all countries in the region. Last year, Chinese President Xi Jinping visited Saudi Arabia, and earlier this year, Iran’s president also visited China,” said Hua to ISNA news agency.

“The presidents of Iran, China, and Saudi Arabia engaged in discussions on regional peace and security. Both Iran and Saudi Arabia expressed their commitment to restoring bilateral relations and ensuring peace and stability in the region, a stance that China welcomes. We view this as a success in promoting peace and dialogue,” he summed it up.

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