The US dollar is losing its role in world trade. When the British pound lost its value during World War I and World War II, the US dollar was established as the world’s reserve currency. However, countries around the world are gradually moving away from their dependence on the US dollar.
New Development Bank (NDB) of the BRICS group is now offering loans in local currency. This, according to the latest report from natural news,
BRICS group’s motivation to stop using the US dollar
The move to offer loans in local currency is to move away from reliance on the US dollar. The plan to provide the loan was reportedly confirmed by NDB President Dilma Rousseff. She also said the bank aims to provide her 30% of loans in local currencies of member countries.
Rousseff recently said this in an April 14th interview with CGTN on migration. “We need to find ways to avoid issues such as foreign exchange risk and reliance on a single currency such as the US dollar. “
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In an interview, she stressed that providing 30% of loans in the local currency of BRICS member countries would also help countries avoid exchange rate risks and avoid funding shortages.
