MOSCOW, Aug 23 Leslie Maasdorp, Chief Financial Officer of the BRICS New Development Bank, said that despite plans to increase funding in the currencies of member countries to 30%, the dollar remains a currency that is «programmed» into the bank's DNA.
«Most of the bank's funding — about 70% — will continue to be denominated in dollars … The bank's capital is denominated in US dollars. Our reporting currency is US dollars. Thus, the dollar is programmed into the bank's DNA,» Bloomberg quoted the agency as saying. statement by the financial director of the BRICS bank.
Maasdorp confirmed that the New Development Bank intends to increase the bank's share of financing in national currencies to 30%. That figure is now below 20%, according to Bloomberg.
Earlier, the head of the bank, Dilma Rousseff, said that lending in local currency will allow borrowers to avoid currency risks and fluctuations in US interest rates. In addition, Rousseff announced the plans of the BRICS bank to start lending in the currencies of South Africa and Brazil as part of a plan to reduce dependence on the dollar.
The political decision to create a New Development Bank within the framework of the BRICS was taken in 2013 at a summit in Durban, South Africa. In 2014, at the next summit in the Brazilian city of Fortaleza, an agreement was signed on the bank. The official start of its work was given at the inaugural meeting of the Board of Governors of the bank on July 7, 2015 in Moscow. The main task of the institute is to finance infrastructure and sustainable development projects in the BRICS member countries and in developing countries.
How was the first day of the BRICS summit in South Africa «600» data-crop-height=»338″ data-source-sid=»rian_photo» title=»Brazilian President Lula da Silva, Chinese President Xi Jinping, South African President Cyril Ramaphosa, Indian Prime Minister Narendra Modi and Foreign Minister Russian Federation Sergey Lavrov at the ceremony of photographing the heads of delegations of the BRICS countries in Johannesburg» class=»» />
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