BRICS Bank to Expand Trade in National Currencies
TEHRAN (Tasnim) – The New Development Bank (NDB) set up by the BRICS group of major emerging countries needs to increase local currency fundraising and lending amid Western sanctions against founding shareholder Russia, the South African Finance Ministry said.
The statement comes as South Africa prepares to host a summit of BRICS leaders in Johannesburg later this month. According to Finance Minister Enoch Godongwana, an increase in local currency use among NDB members will be on the agenda, with the aim of reducing the impact of foreign exchange fluctuations rather than de-dollarization.
“Most countries that are members of the NDB have been encouraging (it) to provide loans in local currencies,” Godongwana told Reuters. “(It is) not doing as much as member countries require, but that is the strategic direction we are pushing the bank (in),” the minister added, RT reported.
The Shanghai-based NDB was established in 2014 by Brazil, Russia, India, China, and South Africa with the aim of providing funding for infrastructure and sustainable development projects. The bank formally opened for business in 2015, and was later joined by Bangladesh, the United Arab Emirates, Egypt, and Uruguay. Saudi Arabia is also in talks to become a member.
NDB Chief Financial Officer Leslie Maasdorp told Reuters that the bank aims to increase local currency lending from about 22% to 30% by 2026.