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New Development Bank vice president rejects plans to create US dollar rival through BRICS, emphasizes focus on African countries
The BRICS countries (Brazil, Russia, India, China and South Africa) have presented plans for the future of the alliance while denying rumors about a possible new currency. Leslie Maasdrop, Vice President of the New Development Bank, said in an interview with Bloomberg TV that the BRICS countries are currently focused on expanding their presence in African countries. Maasdrop emphasized that the BRICS countries are emerging markets with different economies and unique characteristics. China remains the largest nation within the alliance and ranks second in the world in GDP. Maasdrop clarified that there are currently no plans for a new currency. Instead …
New Development Bank vice president rejects plans to create US dollar rival through BRICS, emphasizes focus on African countries
The BRICS countries (Brazil, Russia, India, China and South Africa) have presented plans for the future of the alliance while denying rumors about a possible new currency. Leslie Maasdrop, Vice President of the New Development Bank, said in an interview with Bloomberg TV that the BRICS countries are currently focused on expanding their presence in African countries.
Maasdrop emphasized that the BRICS countries are emerging markets with different economies and unique characteristics. China remains the largest nation within the alliance and ranks second in the world in GDP. Maasdrop clarified that there are currently no plans for a new currency. Instead, BRICS countries want to deepen the use of their own local currencies to protect their economies against devaluations. This could be achieved, for example, by taking out loans in local currencies.
The BRICS countries are also open to new members. The United Arab Emirates, Egypt and Bangladesh were accepted as part of the alliance in 2020. All current accession candidates must go through the ratification process, and new members are expected to join the alliance in 2023. Saudi Arabia has also shown interest in joining the BRICS group.
The New Development Bank, founded by the BRICS, currently has a subscribed capital of $50 billion. By accepting new members, more fresh capital will flow into the bank in order to expand its lending.
In the long term, the BRICS countries aim to normalize the use of local currencies among the members of the alliance. This is intended to strengthen the stability of local economies.
In conclusion, 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 are expected to bring more fresh capital into the New Development Bank. The long-term goal is to normalize the use of local currencies within the alliance.