BRICS Pushes NDB to Boost Local-Currency Financing Amid Growing Demand

BRICS leaders have called on the New Development Bank (NDB) to increase its use of local currencies for financing, aiming to reduce borrowers' exposure to exchange-rate volatility. This push comes as NDB enters its second decade with a larger balance sheet but still largely reliant on dollar-denominated financing.

The bank approved $43 billion in projects over its first decade and has a cumulative active portfolio worth $35.6 billion. Local-currency financing accounted for 29.3% of this portfolio, with renminbi (Chinese yuan) dominating at $7.67 billion, followed by rand-denominated financing of about $2.43 billion.

The bank's leaders want NDB to scale up local-currency financing and mobilize more resources for infrastructure and sustainable development projects in emerging market economies. They also called on the bank to expand its membership and consider applications from interested BRICS countries more quickly.