BRICS Bank to Issue Indian Rupee Bond
According to a Reuters report, the BRICS Bank, also known as the New Development Bank (NDB), is planning to issue its first Indian Rupee Bond by October. The bank’s Vice President and Chief Operating Officer, Vladimir Kazbekov, announced this news as the lender faces pressure to raise and lend more in local currencies. The target size of the bond project has not been disclosed.
Increasing Presence in Local Capital Markets
The NDB aims to increase its presence in the local capital markets of its member countries to fund its portfolio of local currency loans, according to Kazbekov. The bank recently issued its first South African rand bond and is considering issuing bonds in other member countries such as Brazil, Russia, and the United Arab Emirates.
BRICS Bank Expands Membership
The NDB, established in 2015 by member nations Brazil, Russia, India, China, and South Africa, has expanded its membership to include Bangladesh, Egypt, the United Arab Emirates, and Uruguay. The bank faced slow-paced lending due to sanctions on Russia, prompting it to explore financing projects in one member country’s currency instead of using the U.S. dollar.
De-dollarization and Expansion of BRICS
The BRICS nations are moving towards de-dollarization as planned, with India recently completing a crude oil transaction with the UAE using the Rupee instead of the U.S. dollar. This move aims to reduce reliance on the U.S. dollar. The BRICS nations have also agreed to expand their group to include other interested countries.
Hot Take
The BRICS Bank’s plans to issue an Indian Rupee Bond and expand its presence in local capital markets indicate a shift towards de-dollarization and increased autonomy for member countries. This aligns with the broader trend of countries seeking alternatives to the U.S. dollar and highlights the growing influence of the BRICS nations in the global economy.
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