BEIJING: The first loan to be issued by the US $ 100 billion New Development Bank (NDB) of the five-nation BRICS bloc in April next year would in Chinese currency Renminbi (RMB), its president KV Kamath has said.
The NDB will "get our first loan approved in April of 2016", and the first loan will be issued in the Chinese Renminbi, said the eminent Indian banker, who will be the NDB's president for the first five years, at a media interaction on Thursday.
The NDB opened in Shanghai on July 21 to finance infrastructure projects, mainly in BRICS countries - the emerging economies of Brazil, Russia, India, China and South Africa.
The NDB will have an initial authorised capital of US $ 100 billion and initial subscribed capital of US $ 50 billion equally shared among the five founders.
In his media interaction at Shanghai, Kamath, the former Independent Director of Infosys and former Chairman of ICICI Bank, said that setting up of the NDB signals "the coming of age of the developing countries."
China is competing with US in all sense now
Ram Chandra Gaur
Loan in Chinese currency does not necessarily imply that goods and services have to sourced from China. It only means that repayment has to be in CNY which follows fixed exchange rate .This would be a great advantage while taking forex cover against currency volatility!
shyamrajng narayan gopal
If this bank and BRICs want to break the monopoly of IMF, World Bank and the US, then the first rule should NO lending or repayment in US Dollar. Bank can lend in Yuan, Rupee, Roubles but NOT in US Dollar. This should be put in the MoA of the Bank.
Let us hope that NDB plays a pivotal role in the development of the member nations in general and AIIB to the Infra sector in particular.
: The first loan to be issued by the US $ 100 billion New Development Bank (NDB) of the five-nation BRICS bloc in April next year would in Chinese currency Renminbi (RMB), its president KV Kamath has said.
Yuan Renminbi is artificially supported currency of China. The Chinese want to create demand for it by using the NDB but its just going to be another failure. Kammath will be the scapegoat if he doesnt quit before too long.
I thought Chinese currency was Yuan and Malaysian currency is RMB?
Yuvaraj S • Michael Dias
Chinese currency is named as Yuan Renminbi (CNY) and Malaysian currency is Ringitt (MYR)