BRICS New Development Bank Ditching US Dollar by Offering Loans in Local Currencies

Discern Report ^ | 4/20/23 | Ramon Toney

[CFW]

The New Development Bank (NDB) established by the five-member BRICS group is offering loans in local currencies, part of its efforts to ditch the use of the U.S. dollar for world trade.

NDB President Dilma Rousseff confirmed the move, adding that the financial institution plans to give 30 percent of loans in the local currencies of member nations. The NDB was established in 2014 by the BRICS group – Brazil, Russia, India, China and South Africa – to challenge the U.S.-dominated World Bank. Rousseff, who served as Brazil’s president from 2011 until her impeachment in 2016, took over the NDB’s leadership in March 2023.

“It is necessary to find ways to avoid foreign exchange risk and other issues such as being dependent on a single currency, such as the U.S. dollar,” she said during an April 14 interview with the Chinese media outlet CGTN.

“The good news is that we are seeing many countries choosing to trade using their own currencies. China and Brazil, for instance, are agreeing to exchange with [the Chinese yuan] and the Brazilian real.”

[rb22982]

Ww2 events AND something to change to….nothing at the moment sticks out even remotely

[Yollopoliuhqui]

This is the actual reason we are supporting Ukraine as a potential NATO member - squeeze Russia to play the IMF/World Bank mafia loan sharking game.

[CFW]

“So why then is the USD up this year against the Euro, Yen, Pound, and pretty much every other major currency?”

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The U.S. dollar has actually weakened considerably against the euro in recent months.

By the end of last September, Americans could buy one euro with just 96 cents. But the U.S. dollar has lost about 14% of its value against the euro since that recent peak; Americans needed $1.10 to buy one euro as of April 4.

The dollar has gone from $113.00 six months ago to a little less that $102.00 today. A weakening dollar means that imports become more expensive thus adding to inflation. A weak dollar diminishes its purchasing power internationally, which eventually leads to higher prices for the consumer. In addition, a weak dollar increases the cost to import oil, causing oil prices to rise. (Thank you Joe Biden for returning us to depending on OPEC for oil). This means a dollar buys less gas and thus that increased cost also causes the prices of all products to rise.

A weak dollar is inflationary and a sign of an economic down-turn. Or, inflation results in a weak dollar, also a sign of an economic down-turn. In other words, inflation is not going to ease much in the near future.