SOUTH AFRICA - BRICS Countries Aim to De-Dollarize
Hobbled by the impact of sanctions against founding shareholder Russia, the New Development Bank (NDB) set up by the BRICS countries needs to increase its local currency fundraising and lending, South Africa’s finance minister told Reuters.
Finance Minister Enoch Godongwana said boosting local currency usage among the NDB’s members will also be on the agenda, with the aim of de-risking the impact of foreign exchange fluctuations rather than de-dollarization.
Increasing local currency fundraising and raising capital from new members could help the NDB in tough times, cutting its dependence on U.S. capital markets where sanctions against Russia have driven up its borrowing costs, analysts said.
Bangladesh, the United Arab Emirates and Egypt have joined since 2021, bringing its membership to eight. Uruguay is part way through the process of joining, while Algeria, Honduras, Zimbabwe and Saudi Arabia have expressed interest.
By comparison, the Asian Infrastructure Investment Bank, which is backed by China and began operating in 2016, has 106 members, including 23 European countries and 45 outside of Asia.
-www.reuters.com, 10 August 2023
Arno's Commentary
Quite naturally, China is the powerhouse when it comes to finances and economic might. The nation is on its way to replace the USA as the largest economy in the world. Presently, it is the undisputed leader in manufacturing, with 28.7% of global output. Nevertheless, to replace the dollar is all but impossible at this time. However, it shows that new global power blocs are being formed, which we recognize as eventually leading to a one-world currency, one-world economy, and finally, a one-world government.
Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.
