From local currencies to AI: BRICS is building a bank for the Global South

By 2031, the share of New Development Bank (NDB) projects financed in local currencies "will exceed 45%," Russian Finance Minister and NDB Board of Governors Chair Anton Siluanov said in May. It now stands at 30%, he added at the bank's Annual Meeting. 

It's a mission the bank was built for. Established in 2015 by Brazil, Russia, India, China and South Africa, the Shanghai-based NDB exists to mobilize resources for infrastructure and sustainable development across the Global South.

India's state-owned REC Limited is the latest case in point, securing an NDB loan to build renewable energy power plants, as the country expands clean energy and steps back from fossil fuels.

Wang Youming, a researcher at the China Institute of International Studies, said stronger use of local currencies in trade, investment and foreign-exchange reserves could reduce developing countries' reliance on the US dollar.

It can also shield economies from external shocks, strengthen fiscal and financial autonomy, and mitigate politically motivated sanctions, he added.

By June 2026, the NDB had approved 139 projects totaling about $42.9 billion. According to the lender, the projects have helped increase clean energy capacity by 2,400 megawatts, cut annual carbon dioxide emissions by 14.7 million tonnes, and supported the construction of 35,000 housing units, 43 schools, 1,400 kilometers of tunnels and canals, and 40,400 kilometers of roads.

In Brazil, the Pará State Water and Sanitation Infrastructure Development Project focuses on protecting drinking water, reducing pollution and restoring ecosystems. In India, the Delhi-Ghaziabad-Meerut Regional Rapid Transit System Project aims to improve public transport, ease congestion and promote low-carbon mobility.

Beyond green infrastructure, the NDB has been developing new financing tools to address long-standing challenges – limited access to capital and exposure to exchange-rate volatility.

The NDB is not the only BRICS mechanism strengthening financial resilience. The BRICS Contingent Reserve Arrangement (CRA), established in 2015 with an initial reserve pool of $100 billion, provides a financial safety net for members facing short-term balance-of-payments pressures.

China accounts for 41% of its resources. The CRA complements existing global safety nets by giving BRICS countries an extra mechanism to respond to crises.

The NDB is also expanding beyond physical infrastructure. In June, Uzbekistan became the NDB's 10th member. Roman Sherov, vice president of the NDB, said the bank would incorporate digitalization and AI into its investments, with a focus on AI-powered digital finance over the next five years. 

Ahead of the 18th BRICS Summit in New Delhi this weekend, Lucas Enriquez Rocha, coordinator of the BRICS Study Group at the University of Sao Paulo, said in an interview with TV BRICS that the event could act as a sounding board for ideas and platform for new partnerships around AI safeguards, green finance and digital payment infrastructure.

From local-currency loans to AI, the NDB is betting that the future of development lies in the Global South's own hands.