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New Development Bank (NDB), a Shanghai-based multilateral development bank established by Brazil, Russia, India, China and South Africa (BRICS), will finance more projects in local currencies, said President Dilma Rousseff.
Speaking at the eighth annual meeting, she said the move will strengthen domestic capital markets and protect borrowers from the risk of currency fluctuations because many emerging markets and developing countries have currencies that are not fully convertible within the current financial architecture.
Developing countries face a huge funding deficit in meeting the sustainable development goals, Rousseff said.
“Through innovative financing to support the necessary infrastructure investments, NDB is committed to helping our members combat poverty, create jobs, and promote environmentally sustainable development,” she added.
In April, Egypt’s Minister of Supply and Internal Trade Ali Moselhy said the country was considering dealing in Chinese Yuan when importing wheat from China.
Iraq’s central bank announced in February plans to allow trade from China to be settled directly in yuan for the first time. The central bank has been taking urgent steps to compensate for a dollar shortage in local markets.
(Writing by P Deol; Editing by Anoop Menon)
