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BRICS to Challenge US Dollar Hegemony: XRP or Bitcoin Poised for Trillion Dollar Role?

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  • The New Development Bank (NDB) of BRICS aims to issue its premier Indian Rupee Bond in October.
  • BRICS nations are progressively pivoting towards de-dollarization, with the Indian Rupee transaction with UAE serving as a recent example.

BRICS’ Strategic Play in Global Finance

As the tides of global finance sway, BRICS, represented by its New Development Bank (NDB), prepares to make waves by announcing the imminent release of its inaugural Indian Rupee Bond by October, as revealed in a Reuter’s report.

The Local Currency Emphasis

Vladimir Kazbekov, the Vice President and Chief Operating Officer of NDB, broke the news amidst increasing pressures on the lender to expand and facilitate more in local currencies. Although the exact magnitude of the Rupee bond project remains undisclosed, the essence behind this decision is unmistakable.

Kazbekov emphasized,

“Our aim is to amplify our footprint in the local capital markets of our member nations, which aligns with our fervent drive to finance an extensive portfolio of local currency loans.”

This isn’t the bank’s first foray into local currency bonds. Notably, it recently launched its maiden South African rand bond. Additionally, deliberations are underway regarding the issuance of bonds in local currencies of other member countries including Brazil, Russia, and even the United Arab Emirates.

Founded in 2015 by its member countries – Brazil, Russia, India, China, and South Africa, the NDB stands as a testament to BRICS’ collective vision and is recognized as one of the alliance’s most tangible achievements. It operates with a clear mandate: to galvanize resources effectively for infrastructural and sustainable development endeavors in budding markets and developing nations. Amplifying its impact, the bank began widening its member base two years ago.

Membership and De-dollarization Aspirations

Post its expansion, nations like Bangladesh, Egypt, United Arab Emirates, and Uruguay were welcomed into the fold. However, it’s essential to note that the bank’s lending pace did hit a temporary snag due to sanctions enforced on Russia post its Ukraine invasion. This predicament led to a creative solution wherein the bank contemplated using the currency of one member nation to fund projects in another, exemplifying a venture in South Africa financed in Chinese yuan instead of the ubiquitous U.S. dollar.

This strategic direction is indicative of the BRICS nations’ cohesive journey towards de-dollarization. Case in point: India’s recent crude oil transaction with the UAE, executed using the Rupee, thereby circumventing the U.S. dollar.

As BRICS’ de-dollarization plan gains momentum, it’s drawing increasing international attention, with several nations expressing their eagerness to join. Responding to this interest, the BRICS alliance has collectively consented to open their doors for more nations to join their vision.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628
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