Johnathan Paoli
The New Development Bank (NDB), colloquially known as the BRICS Bank, has announced its intention to begin offering loans in local currencies of Brazil and South Africa, as a deliberate attempt to shift reliance away from the US Dollar.
The multilateral development bank was established in 2015 by the BRICS nations (Brazil, Russia, India, China and South Africa), and its current president is the former Brazilian leader, Dilma Rousseff.
In an interview with Financial Times, Rousseff confirmed that the bank is currently considering applications for membership from about 20 countries, with the admission of four and five being most likely.
Rousseff said that between $8 – $10 billion is the lending goal for the bank this year, with the aim of having 30% of the loans in local currencies.
Rousseff said lending in local currency would allow borrowers in member countries to avoid exchange rate risk and variations
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