Now The New Development Bank (NDB) of the BRICS group has begun to offer loans in local currencies.
The move to offer loans in local currencies is to steer away from the US dollar’s dependency. The plan to offer the loan was reportedly confirmed by NDB President Dilma Rousseff. She also stated that the bank aims to provide 30% of the loans in the local currencies of member nations.
Rousseff recently stated this in an April 14 interview with CGTN regarding the move. “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 also stressed during the interview that providing 30% of the loans in the local currencies of BRICS member countries will also help the countries avoid exchange rate risks and finance shortages.
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