BRICS Bank CFO Rules Out Near-Term Move Towards Common Currency
The New Development Bank (NDB), established by the BRICS group of emerging markets, currently has no immediate plans to introduce a common currency among its member countries, according to Leslie Maasdorp, Vice President and Chief Financial Officer of the bank. While BRICS nations like Brazil, Russia, India, China, and South Africa aim to increase trade in local currencies, they are not prepared to challenge the global dominance of the US dollar. Maasdorp emphasised that the development of an alternative currency is a long-term goal rather than an immediate priority.
Since its formation in 2009, the BRICS group has sought to enhance its global influence as a means to counterbalance the predominance of the US and its traditional allies in multilateral financial institutions like the World Bank and the International Monetary Fund. However, Maasdorp noted that even the Chinese Renminbi is far from attaining the status of a reserve currency.
The New Development Bank, headquartered in Shanghai, plays a crucial role in the BRICS strategy. With $50 billion in subscribed capital, the bank plans to expand its lending capacity by including new member countries from emerging markets. Apart from the core BRICS nations, the bank already includes Bangladesh and the United Arab Emirates among its members, with Uruguay in the process of joining and Saudi Arabia having applied for membership.
According to Maasdorp, the bank's vision has always been to create a global institution anchored in emerging markets. Additionally, the NDB aims to allocate 40 per cent of its lending towards climate-related projects, highlighting its commitment to sustainable development and addressing climate change challenges.
