CAPE TOWN, August 30. /TASS/. The New Development Bank (NDB) that has been established by BRICS member states is prioritizing the use of local currencies to ensure the stable development of the global economy, the bank’s President Dilma Rousseff said at a plenary session of its Board of Governors.
"The US dollar often plays a destabilizing role in the financial markets of developing nations. This is why the expansion of the use of local currencies is one of the main directions the NDB is aimed it. We have made a decision, according to which up to 30% of the total volume of the bank’s financing will be made in local currencies," she said.
The bank is exploring the possibility of creating digital platforms for mutual payments between various countries, Rousseff noted. "An increase in the volumes of the use of local currencies will strengthen developing countries and contribute to the overall stabilization of the global financial market," she said.
The bank’s president also noted the need for immediate reforms in the global financial system. "The existing architecture of the global financial system is unable to address a number of today’s global issues, leading to increased debt in many countries," she said, adding that "urgent changes are required to make the global financial market more stable, meeting the interests of the gradual development of the world economy." She also advocated for reducing the debt levels of several developing countries and redirecting new resources toward establishing a new industrial base, scientific research, and innovation. "Our banks can play a major role in solving these problems," she stressed.
The New Development Bank was set up by BRICS nations on the basis of the intergovernmental agreement signed at the sixth BRICS summit in Fortaleza in July 2014. It has eight members, those being Bangladesh, Brazil, Egypt, India, China, the United Arab Emirates (UAE), Russia, and South Africa. The bank’s goal is to finance infrastructure projects and sustainable development projects in BRICS member states and developing countries. The bank has its own capital worth $100 bln.
Since its founding, the bank has approved more than 100 projects totaling over $34.8 bln in support of such areas as transportation, water, clean energy, digital and social infrastructure, as well as urban construction. The bank is headquartered in Shanghai.