BRICS De-dollarization Hype — But Will Reality Begin to Dawn, that Nothing New Is on the Table, Really?

All Global Research articles can be read in 51 languages by activating the Translate Website button below the author’s name.

To receive Global Research’s Daily Newsletter (selected articles), click here.

Click the share button above to email/forward this article to your friends and colleagues. Follow us on Instagram and Twitter and subscribe to our Telegram Channel. Feel free to repost and share widely Global Research articles.

Transcript by CGTN

China and Brazil are members of the BRICS group, which established the New Development Bank in 2015 to fund development projects in emerging markets and developing countries. Now a former Brazilian president has become the new head of the multilateral bank. Wu Lei sat down with Dilma Rousseff to discuss her priorities during her term in office. 

WU LEI CGTN Reporter: “As former president of Brazil, and economist who has been active in global development for a long time, what will be your priorities in terms of the NDB’s development in the coming years?”

DILMA ROUSSEFF President, New Development Bank: “It is very important to me that the New Development Bank, the bank of the BRICS, acts as a tool to support the development priorities of the BRICS and other developing countries.

We need to invest in projects that contribute to three fundamental areas. First, we need to support the countries with regards to climate change and Sustainable Development Goals. Second, we should promote social inclusion at every opportunity we have. And I believe we should finance their most critical and strategic infrastructure projects, and digital ones.

That said, we want to promote quality development.

Developing countries still don’t have the necessary infrastructure. They don’t have enough ports, airports and highways to meet their needs. And, many times, the ones they have are not adequate. They still have to build alternative and more modern models of transportation, for instance. I see China a country that has developed capability for alternative transportation at the scale and quality it needs. NDB has to support the other countries to also build their quality infrastructure as well, like high speed trains.

It is also very important to invest in technology and innovation. Invest in universities, for example. Our countries will not overcome extreme poverty if we don’t invest in education, science and technology.”

WU LEI CGTN Reporter: “What are some of the challenges the NDB faces now, given the current global situation? What role does the BRICS cooperation mechanism play?”

DILMA ROUSSEFF President, New Development Bank: “The world now is under the threat of high inflation and restrictive monetary policy, particularly in developed countries. Such monetary policy means a higher interest rate and, therefore, a higher probability of a reduction in growth and a higher probability of recession.

This presents an important question for the BRICS. We need a mechanism, a so-called anti-crisis mechanism, which must be countercyclical and support stabilization.

At the same time, it is necessary to find ways to avoid foreign exchange risk and other issues such as being dependent on a single currency such as the US dollar. The good news is that we are seeing many countries choosing to trade using their own currencies. China and Brazil, for instance, are agreeing to exchange with RMB and the Brazilian Real.

At the NDB, we have committed to it in our strategy. For the period from 2022 to 2026, NDB has to lend 30 percent in local currency, and so 30% of our loan book will be financed in the currencies of our member countries. That will be extremely important to help our countries avoid exchange rate risks and shortage in finance that hinder long term investments.”

Note to readers: Please click the share button above. Follow us on Instagram and Twitter and subscribe to our Telegram Channel. Feel free to repost and share widely Global Research articles.

Patrick Bond, Professor, University of the Western Cape School of Government. He is a regular contributor to Global Research. 

Comment on Global Research Articles on our Facebook page

Become a Member of Global Research

Articles by: Prof. Patrick Bond

Disclaimer: The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article. The Centre of Research on Globalization grants permission to cross-post Global Research articles on community internet sites as long the source and copyright are acknowledged together with a hyperlink to the original Global Research article. For publication of Global Research articles in print or other forms including commercial internet sites, contact: [email protected] contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.

For media inquiries: [email protected]