Dilma Rousseff, the foundation’s president, is at the forefront of efforts to de-dollarize the global economy
Johannesburg, South Africa – BRICS Bank, officially known as the New Development Bank (NDB), is poised to make a significant milestone in its financial operations. According to sources close to the foundation headed by Dilma Rousseff, the bank plans to start lending in the Brazilian currency, the real, later this year. This initiative falls within the framework of a strategy aimed at gradually reducing dependence on the dollar in international transactions. According to journalist Assis MoreiraValor Economico reporter.
During the BRICS summit, held in Johannesburg, Dilma Rousseff met with President Luiz Inacio Lula da Silva to discuss the need to start fundraising in riyals “as soon as possible”. At the talks, Dilma also announced that the bank will provide another $1 billion in loans to Brazil in the second half. In the first half of this year, Brazil received the least amount of approved funding among BRICS members, totaling $583 million (operations with Russia were frozen).
Recently, the head of BNDES, Aloizio Mercadante, mentioned a US$500 million transaction with Banco do Brics, which could be the first issuance in riyals. The bank’s strategy, according to Dilma Rousseff, is to diversify its operating currencies. She stated, “We are in an advanced stage of obtaining the necessary approvals to issue bonds in rupees in India, and we have also started legal studies that enable us to raise funds in Brazilian reals. It is expected that the rupee transaction will take place in India.” in October”.
According to the Banco du BRICS Strategic Plan for the period 2022-2026, 30% of the total financing will use the currencies of member countries, which aims to reduce risks related to exposure to foreign exchange and international interest rates. This, in turn, would provide lower costs and greater security for sovereign and private borrowers.
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