Vice President of the New Development Bank rejects plans to create a US dollar rival by BRICS and emphasize focus on African countries

Vice President of the New Development Bank rejects plans to create a US dollar rival by BRICS and emphasize focus on African countries

The Brics states (Brazil, Russia, India, China and South Africa) presented plans for the future of the alliance and at the same time denied rumors about a possible new currency. Leslie Maasdrop, Vice President of New Development Bank, said in an interview with Bloomberg TV that the Brics countries are currently concentrating on expanding their presence in African countries.

Maasdrop emphasized that the Brics countries are up-and-coming markets with different economies and unique features. China is still the largest nation within the alliance and takes second place in GDP worldwide. Maasdrop made it clear that there are currently no plans for a new currency. Instead, the BRICS countries want to deepen the use of their own local currencies to protect their economies against devaluations. This can be achieved, for example, by taking out loans in the local currencies.

The Brics countries are also open to new members. As early as 2020, the United Arab Emirates, Egypt and Bangladesh were included as part of the alliance. All current accession candidates have to go through the ratification process, and it is expected that new members of the Allianz will join in 2023. Saudi Arabia has also shown interest in joining the BRICS group.

New Development Bank, founded by the BRICS, currently has a drawn capital of $ 50 billion. By admitting new members, more fresh capital should flow into the bank in order to expand their lending.

In the long term, the BRICS countries strive to normalize the use of local currencies among the members of the alliance. This should strengthen the stability of local economies.

Finally, it can be said that the BRICS countries currently have no plans for a new currency, but rather want to expand their presence in African countries. New members are welcome and should bring more fresh capital to the New Development Bank. In the long term, the goal is to normalize the use of local currencies within the alliance.