The New Development Bank (NDB), aka the BRICS bank, is seeking to give further loans in local currencies to downgrade reliance on the U.S. dollar and avoid foreign exchange threats. “ We require to create a diversified global currency system, ” NDB’s president stressed, adding “ In the future, it's unlikely that one single currency can dominate the world’s currency system. We'll see further local currencies utilized to settle trade. ”
‘ We Will See Further Local Currencies Utilized to Settle Trade ’
The New Development Bank (NDB), formerly known as the BRICS Development Bank, is seeking to finance further projects in local currencies. The NDB was founded by the BRICS nations, namely Brazil, Russia, India, China, and South Africa. Besides the five founding members, Bangladesh, the United Arab Emirates (UAE), and Egypt have similarly joined. In addition, Uruguay is presently a prospective member, and recent reports suggest that Saudi Arabia is engaged in discussions to potentially come to a member.
NDB President Dilma Rousseff told Tuesday at the annual meeting of the Shanghai-based lender that the bank plans to offer 30 of its loans in local currencies, up from 22 at current. The bank presently uses the U.S. dollar for the utmost of its financing operations. Rousseff spoke at a press briefing:
We need to create a diversified global currency system … In the future, it is unlikely that one single currency can dominate the world’s currency system. We will see more local currencies used to settle trade.
The executive similarly highlighted that the NDB intends to strengthen collaboration with different multilateral and national banks. also, the bank aims to broaden its reach and impact globally by actively inviting more members to join, thereby expanding its business operations and influence. According to its website, the bank has approved 96 projects, amounting to associated approved financing of $32.8 billion.
During an interview with Chinese media outlet CGTN last month, Rousseff clarified:
It is necessary to find ways to avoid foreign exchange risk and other issues, such as being dependent on a single currency, such as the U.S. dollar.
(Kevin Helms, Bitcoin.com, 2023)