Business Maverick

Business Maverick

BRICS Bank CFO Sees No Move Any Time Soon Toward Common Currency

BRICS Bank CFO Sees No Move Any Time Soon Toward Common Currency
Minister of International Relations and Cooperation Naledi Pandor with Chinese Minister of Foreign Affairs Qin Gang in Cape Town on 1 June 2023 during a meeting of the foreign affairs ministers of the BRICS countries. (Photo: Dirco)

The New Development Bank, a financial institution created by the BRICS bloc of emerging markets, doesn’t have any immediate plans for the group to create a common currency, its vice president and chief financial officer said. 

While the members of BRICS – Brazil, Russia, India, China and South Africa – are pushing to conduct more trade between each other in local currencies, they aren’t ready to challenge the global dominance of the dollar, Leslie Maasdorp said in an interview on Wednesday with Bloomberg TV’s Haslinda Amin.“The development of anything alternative is more a medium to long term ambition,” he said. “There is no suggestion right now to creates a BRICS currency.”

Read More: South Africa’s Kganyago Plays Down Common African Currency

The bloc, which was formed in 2009, has been striving to gain more clout globally as a way of counterbalancing the dominance the US and its traditional allies have in multilateral financial institutions such as the World Bank and the International Monetary Fund.

Still, even the Chinese Renminbi “is a very long way from becoming a reserve currency,” Maasdorp said.

A key part of BRICS’ strategy is the Shanghai-based New Development Bank, which has $50 billion in subscribed capital and plans to add several new emerging market member countries this year in a bid to expand its lending capability, according to Maasdorp.

Already, in addition to the core BRICS countries, the bank includes Bangladesh and the United Arab Emirates among its members. Uruguay is in the process of joining and Saudi Arabia has applied to.

“The intention has always been to create a global bank anchored in emerging markets,” Maasdorp said.

Maasdorp also said that the bank aims to direct 40% of lending to climate related projects.


Comments - Please in order to comment.

Please peer review 3 community comments before your comment can be posted

[%% img-description %%]

The Spy Bill: An autocratic roadmap to State Capture 2.0

Join Heidi Swart in conversation with Anton Harber and Marianne Merten as they discuss a concerning push to pass a controversial “Spy Bill” into law by May 2024. Tues 5 Dec at 12pm, live, online and free of charge.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options