Financial institutions from the BRICS members should expand local currency settlement and lending to facilitate the countries' economic growth, China Development Bank (CDB) president Chen Yuan said Wednesday.
As trade and investment among the BRICS countries — Brazil, Russia, India, China and South Africa — grew rapidly over the past years, greater use of local currency in trade settlement and more loans would be beneficial to all, Chen said at a forum before the BRICS Leaders Meeting scheduled on Thursday.
This will facilitate foreign trade and investment among the five countries and help promote a "diversified development of the global monetary system", he said.
Chen noted that within the framework of BRICS countries' inter-bank cooperation mechanism, further discussion could focus on ways and patterns of expanding local currency credits to build a more open and efficient financial service system.
Brazilian Development Bank (BNDES), Russia's State Corporation Bank for Development and Foreign Economic Affairs, Export-Import Bank of India and China Development Bank established an inter-bank cooperative mechanism in April 2010. Development Bank of Southern Africa joined the mechanism Wednesday.
The mechanism has played a positive role in promoting trade and economic cooperation among the countries, Chen said.
The CDB has granted a total of more than 38 billion U.S. dollars in loans to the BRICS countries, covering areas such as infrastructure, energy and resources, he said.
Chen suggested the five countries to enhance cooperation in investment and financing in major sectors, including infrastructure and basic industries, strategic emerging industries as well as sectors of independent innovation.
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