The New Development Bank (NDB), often called the BRICS bank, is strategically shifting its focus to increase funding in local currencies, moving away from reliance on the U.S. dollar. This de-dollarization drive gains practical momentum as China and India have demonstrated the successful implementation of local currency trade. Russia's Foreign Minister, Sergey Lavrov confirmed that BRICS has paid more than 65% of trade settlements among member countries in local currencies and not the dollar Hace 2 días. Source: aceprensa.com.

Why the shift? The dollar’s borrowing costs have spiked recently, creating financial strain. This initiative aims to Boost Domestic Economies: Increased use of local currencies can strengthen domestic businesses and financial institutions within the BRICS nations and beyond. A key benefit is to Reduce Vulnerability: Diversifying away from the dollar shields economies from fluctuations in U.S. monetary policy and global economic shocks. The BRICS bank increasing funding in local currencies represents a significant step towards economic independence and resilience for its member countries.