The New Development Bank (NDB) plans to disburse loans in national currencies to end dependency on the US dollar. The move will also strengthen the alliance and make local currencies the center of all transactions. Disbursing loans in national currencies worth billions and repayment in the same tender will help the currency grow stronger. NDB could change its financial stance and become more lucrative to other emerging economies in the markets.

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Russian Deputy Foreign Minister Sergey Ryabkov said that the White House sanctions on developing countries are what led the BRICS Bank to decide on lending loans in national currencies. He confirmed that Russia is closely working with NDB on the development to increase financing in national currencies. This would bypass Western sanctions and allow NDB to operate in all economic situations and not be under Western influence.

BRICS Bank: Russia Working Towards NDB Financing Loans in National Currencies

Ryabkov explained that BRICS Bank President, Dilma Rousseff would take necessary steps to meet the goals of financing in national currencies. “We proceed with the work with the bank in various areas, including on issues of expanding financing in national currencies and development of innovative processes in the field of investment and financial instruments,” Ryabkov said.

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“The management of NDB, including the re-elected president of the bank Dilma Rousseff, takes necessary steps for BRICS Bank to meet its goals (national currencies) on a fair and non-discriminatory basis,” he said. He stressed that sanctions from the White House are affecting the way how the bank functions. “Sanctions pressure from Western countries still impedes the normal functioning of the bank on the territory of the Russian Federation.”

He also lashed out at the recent tariffs and trade wars that dislodged the normal flow of global trade. “We stand in solidarity regarding the fact that such measures undermine the multilateral trade system, hindering the achievement of sustainable development goals,” the official said. However, he did not specify when would the BRICS Bank start disbursing loans in national currencies.