The New Development Bank (NDB) established by the five-member BRICS group is offering loans in local currencies, part of its efforts to ditch the use of the U.S. dollar for world trade.
NDB President Dilma Rousseff confirmed the move, adding that the financial institution plans to give 30 percent of loans in the local currencies of member nations. The NDB was established in 2014 by the BRICS group – Brazil, Russia, India, China and South Africa – to challenge the U.S.-dominated World Bank. Rousseff, who served as Brazil’s president from 2011 until her impeachment in 2016, took over the NDB’s leadership in March 2023.
“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,” she said during an April 14 interview with the Chinese media outlet CGTN.
“The good news is that we are seeing many countries choosing to trade using their own currencies. China and Brazil, for instance, are agreeing to exchange with [the Chinese yuan] and the Brazilian real.”
Rousseff emphasized that the NDB has committed to this pivot toward local currencies in its strategy. In line with this, the bank has to lend 30 percent in local currencies. Thus, she told CGTN that 30 percent of the NDB’s loan book will be financed in the currencies of BRICS member countries.
“That will be extremely important to help our countries avoid exchange rate risks and shortages in finance that hinder long-term investments,” Rousseff said.
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Incumbent Brazilian President Luiz Inacio Lula da Silva visited the NDB’s headquarters in the eastern Chinese city of Shanghai to attend Rousseff’s swearing-in ceremony. Lula was the first head of state to visit the institution’s headquarters. Rousseff succeeded Lula after the latter served two presidential terms from 2003 until 2010. JEEZ DIDNT THEY PROTEST HIS ELECTION AND HIS FIRST ACT IS OT RUN TO CHINA
The Brazilian leader challenged the dollar’s dominance during his trip to China. He emphasized that the NDB’s goal is to create “a world with less poverty, less inequality and more sustainability,” and challenged the bank to play a “leading role in achieving a better world, without poverty or hunger.”
discern.tv/brics-new-development-bank-ditching-us-dollar-by-offering-loans-in-local-currencies/
h/t Coastie Patriot