BRICS, a bloc of leading emerging markets, is taking a significant step towards de-dollarization. The New Development Bank (NDB), known as the BRICS bank, is preparing to launch new bonds in global markets, which will be available in local currencies rather than in the US dollar. This initiative aims to strengthen local currencies and reduce reliance on the US dollar in international finance.

BRICS Bank to Issue $28 Billion in Local Currency Bonds

The BRICS bank, commonly called the New Development Bank (NDB) is preparing to launch new bonds in the global markets. These soon-to-be-released bonds, known as ‘Maharaja Bonds’, will be issued for the tune of $28 billion in local currencies, sidelining the U.S. dollar. The alliance will offer the BRICS bonds for the tune of $28 billion in local currencies, sidelining the U.S. dollar. The New Development Bank (NDB), known as the BRICS bank, is set to launch ‘Maharaja Bonds’ valued at $28 billion in local currencies to encourage de-dollarization. The development will strengthen local currencies and foster greater financial independence among member nations.

Impact of BRICS Bond Initiative

The BRICS’ decision to issue bonds in local currencies, rather than the US dollar, has far-reaching implications. A reduced role for the dollar in international transactions could lead to inflationary pressures within the United States, affecting the American consumer directly. However, proponents argue that it promotes a more balanced global financial system.