New Development Bank President Rousseff: In the future, there will be more and more local currency settlements, and digital currencies will have great appeal

Interface News Reporter | Feng Saiqi

Now, we see the diversity and diversity of currency settlement, including the emergence of digital currencies

On May 30th, the eighth annual meeting of the New Development Bank (NDB) Board of Directors opened in Shanghai. In the afternoon of the same day, at the president's press conference, Dilma Rousseff, the president of the New Development Bank who had just taken office for two months, received a media interview and made a speech.

Rousseff stated that the New Development Bank is a platform dedicated to serving emerging open markets and developing countries. The New Development Bank has the ability to spread the voice of developing countries to more places and will expand its circle of friends to all "southern countries" (developing countries) in the future.

She also stated that by building a "tripod" for investment and financing with regional banks and other financial institutions, the New Development Bank will provide investment and financing services with richer capital capabilities and more diverse currency varieties.

She believes that the world is becoming more and more marginalized, and currencies are also showing this trend. This change is not dominated by people, but determined by the development of reality. In the future, there will be no hegemonic currencies, and the trend is for more and more local currency settlements.

It is reported that providing local currency financing is also an important manifestation of the value of New Development Bank. As of the end of the first quarter of 2023, the financing amount provided by the New Development Bank in the local currency of member countries accounted for 21.5% of the total investment.

I think digital currencies will have great appeal in the future, "Rousseff pointed out. The use of digital currencies will be a major trend in the future, possibly within the framework of BRICS countries or other countries and organizations, where digital currencies will enter the trading system.

Since its establishment in 2015, the New Development Bank has approved a total of 98 projects in member countries, with a total investment of approximately 33.2 billion US dollars. A total of 22 Chinese projects have been approved, with an investment amount of approximately 8.4 billion US dollars.

In addition, on the eve of the opening of the annual meeting, on May 29th, New Development Bank issued RMB 8.5 billion of panda bonds in the China interbank bond market, surpassing New Development Bank's previous largest single issuance of RMB 7 billion of panda bonds.

Through this transaction, New Development Bank has established a new benchmark for Panda Bond in the Chinese interbank bond market. This transaction attracted the attention and participation of domestic and foreign investors, and ultimately successfully priced the bonds with a negative premium.

The funds raised from this bond will provide financing for infrastructure and sustainable development projects supported by the New Development Bank, supporting member countries' development and promoting the achievement of sustainable development goals. The raised funds can be converted into RMB and/or other currencies for overseas investment.

It is reported that Bank of China serves as the lead underwriter for this issuance. Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Ping An Bank, Ningbo Bank, CITIC Securities, and Guotai Jun'an Securities served as joint underwriters for this issuance.