In the latest move of strength to push the de-dollarization initiative, the BRICS bank announced it will raise $3 billion worth of funds in local currencies and not the US dollar. The medium-term program initiated by the BRICS bank, commonly called the ‘New Development Bank (NDB) plans to raise $3 billion in local currencies in the next five years. The BRICS bank will provide loans to developing countries in local currencies to help them aid infrastructural projects.
Also Read: BRICS Offers Bonds Worth $28 Billion in Local Currency, Not US Dollar
The US dollar will not find its place while raising funds giving a boost to local currencies by BRICS. Read here to know how many sectors in the US will be affected if BRICS stops using the dollar.
BRICS Bank To Use Local Currencies For Raising Funds, Ditch US Dollar
Vladimir Kazbekov, the Chief Operating Officer of NDB said that the bank is preparing to launch its maiden bond offering for the tune of $28 billion. The new BRICS bond will be called the ‘Maharaja Bond’ and aims to receive investments in local currencies. Therefore, the BRICS bank NDB is sidelining the US dollar while raising funds and offering bonds worth billions of dollars.
Also Read: BRICS: India Gets Reality Check, Ditching US Dollar Becomes Impossible
“This will be a medium-term program through which NDB aims to raise resources in local currency up to $3 billion over the next five years. We will use these resources primarily to finance private-sector projects. Regulatory approvals for the maiden NDB bond offering are awaited and will likely be completed soon,” said Kazbekov.
Also Read: 30 New Countries Ready To Join BRICS in 2024, Confirms Russia
The BRICS bank lent $500 million in loans to India to fund a road project in the state of Gujarat. Read here to learn more details about the project and how the BRICS bank funded the large-scale infrastructural initiative. This is the first time that the BRICS New Development Bank lent loans this year in 2024.