BRICS Countries Agree to Support New Development Bank’s 2022-2026 Strategy and Expand Local Currency Financing
The 16th BRICS Summit has seen the BRICS countries agree to support the New Development Bank (NDB) in implementing its general strategy for 2022-2026 and expanding local currency financing. This move is seen as a significant step towards strengthening financial cooperation and promoting local currency settlement among the BRICS nations.
Agreement to Build NDB into a New Type of Multilateral Development Bank
In addition to supporting the NDB’s strategy, the BRICS countries have agreed to jointly build the bank into a new type of multilateral development bank for the 21st century. This ambitious goal is expected to be achieved through further expansion of membership, with the review of membership applications from BRICS countries to be expedited in accordance with the bank’s general strategy and related policies.
Strengthening Financial Cooperation and Promoting Local Currency Settlement
The BRICS countries have also encouraged each other to strengthen financial cooperation and promote local currency settlement. This is expected to lead to increased economic benefits, such as reduced dependence on foreign currencies and improved economic resilience.
Fostering a New Type of Multilateral Development Bank
The BRICS NDB is poised to become a new type of multilateral development bank, one that is more representative of the emerging economies of the world. With its expanded membership and increased lending capacity, the NDB is expected to play a crucial role in financing infrastructure development, innovation, and sustainable development projects in the BRICS countries and beyond.
Conclusion
The agreement reached at the 16th BRICS Summit marks a significantmilestone in the development of the NDB and the further strengthening of financial cooperation among the BRICS countries. As the bank continues to grow and evolve, it is expected to play an increasingly important role in promoting economic development and cooperation among its member countries.
Frequently Asked Questions
Q: What is the New Development Bank (NDB)?
A: The NDB is a multilateral development bank established by the BRICS countries to promote sustainable development, cooperation, and economic growth in the member countries.
Q: What is the NDB’s general strategy for 2022-2026?
A: The NDB’s general strategy for 2022-2026 aims to promote sustainable development, increase its lending volume, and expand its membership.
Q: How will the NDB promote local currency settlement?
A: The NDB will promote local currency settlement by encouraging the use of local currencies for trade, investment, and project financing, thereby reducing dependence on foreign currencies and improving economic resilience.
Q: What are the benefits of the NDB for the BRICS countries?
A: The NDB is expected to benefit the BRICS countries by providing access to financing, promoting economic development, and fostering cooperation among member countries.