**Title: BRICS Development Bank Rules Out Immediate Plans for Common Currency**
The New Development Bank (NDB), established by the BRICS bloc of emerging markets, has no immediate intentions of creating a common currency, according to Leslie Maasdorp, the bank’s vice president and chief financial officer. While the BRICS countries are eager to increase trade among themselves using local currencies, they are not prepared to challenge the current global dominance of the U.S. dollar. Maasdorp clarified in an interview with Bloomberg TV’s Haslinda Amin that any alternative developments in this regard are more of a medium to long-term ambition.
Gaining Global Clout
Formed in 2009, the BRICS bloc aims to increase its influence worldwide, as a counterbalance against the dominance of the United States and its traditional allies in global financial institutions like the World Bank and the International Monetary Fund (IMF). However, Maasdorp emphasizes that even the Chinese Renminbi still has a long way to go before it becomes a reserve currency.
The Role of the New Development Bank
The primary strategic focus of the BRICS bloc is the New Development Bank, headquartered in Shanghai, which currently holds $50 billion in subscribed capital. The bank plans to expand its lending capability by welcoming several new emerging market member countries into its fold this year. In addition to the core BRICS nations, the bank already includes Bangladesh and the United Arab Emirates as members, with Uruguay in the process of joining and Saudi Arabia having submitted an application.
A Global Bank Anchored in Emerging Markets
Leslie Maasdorp reaffirms that the New Development Bank’s ultimate aim is to create a global financial institution rooted in emerging markets. This vision aligns with the BRICS bloc’s efforts to strengthen their collective influence on the global stage.
Focus on Climate Projects
Additionally, Maasdorp emphasizes the New Development Bank’s commitment to directing 40% of its lending towards climate-related projects. This demonstrates the institution’s dedication to sustainable development and addressing environmental challenges.
In conclusion, the New Development Bank, as a financial institution established by the BRICS bloc, currently has no plans to introduce a common currency. While the BRICS countries aspire to conduct more trade using local currencies, challenging the global dominance of the U.S. dollar is a long-term endeavor. The New Development Bank serves as a strategic focus for the BRICS bloc, with a vision to become a global bank rooted in emerging markets. Furthermore, the bank is dedicated to supporting sustainable development by directing a significant portion of its lending towards climate-related projects.
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