'BRICS bank' looks to local currencies as Russia sanctions bite
The Hindu
BRICS countries set up New Development Bank (NDB) to widen influence, but sanctions against Russia have hindered its ambition. NDB needs to increase local currency fundraising and lending to de-risk foreign exchange fluctuations.
Hobbled by the impact of sanctions against founding shareholder Russia, the New Development Bank (NDB) set up by the BRICS countries needs to increase its local currency fundraising and lending, South Africa's Finance Minister told Reuters.
South Africa will host leaders of the other BRICS nations - Brazil, Russia, India and China - as the bloc aims to widen its influence at a Johannesburg summit later this month.
Finance Minister Enoch Godongwana said boosting local currency usage among the NDB's members will also be on the agenda, with the aim of de-risking the impact of foreign exchange fluctuations rather than de-dollarisation.
The greenback has gained against emerging market currencies since Russia invaded Ukraine and the Federal Reserve began raising interest rates to fight inflation in early 2022, making dollar debt more costly for those countries to service.
"Most countries that are members of the NDB have been encouraging (it) to provide loans in local currencies," Mr. Godongwana said.
Established in 2015 as the flagship financial project of the bloc, the NDB's ambition to serve emerging economies and de-dollarise finance have been curbed by economic realities and Moscow's invasion of Ukraine.
"(It is) not doing as much as member countries require, but that is the strategic direction we are pushing the bank (in)," Mr. Godongwana said in a telephone interview last week.
Seven suspects arrested in Bangladesh for the lynching of a Hindu man over alleged blasphemy, amid ongoing violence against minorities.
IMF approves $206 million emergency aid for Sri Lanka's recovery from Cyclone Ditwah, addressing urgent humanitarian and economic needs.
Taiwan's rare violent crime shocked citizens as a planned attack left three dead and eleven injured, prompting heightened security measures.
Ex-Pakistan PM Imran Khan and wife Bushra Bibi sentenced to 17 years in Toshakhana corruption case.
Honduras faces growing tension as the presidential vote count extends into its third week, raising concerns over transparency and trust.
Former Prime Minister Khaleda Zia's health is now stable, according to her doctor, following treatment for multiple complications.
Explore the timeline of the Jeffrey Epstein investigation and the push for government transparency on his criminal activities.
The Justice Department's initial release of Epstein files sparks controversy over redactions and incomplete disclosures, angering lawmakers and the public.
The U.S. military will end live animal training for medics, shifting to advanced simulation technology to reduce animal suffering.
Brazil's ex-President Bolsonaro is allowed temporary release from prison for hernia surgery amid ongoing legal battles following his coup conviction.
Photos of Bill Clinton emerge in new Epstein files, prompting his spokesman to clarify the investigation's focus isn't on him.
Rubio announces imminent governance changes in Gaza, followed by an international stabilization force to ensure ceasefire and security.
Cyclone Ditwah has claimed hundreds of lives and displaced scores in Sri Lanka. While it has affected several villages and towns, the highest death toll has been recorded in Kandy in the Central Province. It is part of the island’s hill country that is home to the Malaiyaha Tamils, whose centuries-old precarity makes them especially vulnerable to such shocks.