BRICS Bank To Increase Funding in Local Currency, Ditching U.S. Dollar
The New Development Bank (NDB) is looking to increase its funding in local currencies and not the U.S. dollar. The dollar’s borrowing costs have spiked recently, making the NDB rely on local currencies for lending. The U.S. pressed sanctions against Russia for invading Ukraine, and other countries are unable to borrow loans from the NDB. Since the bank is facing a crisis due to the halt in day-to-day business, BRICS is looking to fundraise and provide fresh loans in local currencies. Also Read: Will U.S. Economy Be Impacted if BRICS Trade In Local Currencies? BRICS Bank Looks To Increase Funding in Local Currency and Not the U.S. Dollar Source: Reuters / Getty Images South Africa’s Finance Minister Enoch Godongwana said on Thursday that the NDB aims to bolster the usage of local currencies by its members. The NDB aims to de-risk the impact of foreign exchange fluctuations and provide loans to countries in local currency. Also Read: BRICS : Over 40 Countries Ready...