By Xiaolei Gu
Mar. 14 – The China Development Bank (CDB) has taken the initiative to bring out an agreement among the BRICS nations by pledging to extend credit in renminbi (RMB) to the group’s four other members, according to a report by the Financial Times.
To this effect, a memorandum of understanding is scheduled to be signed by the CDB and its counterparts in Brazil, Russia, India and South Africa on March 29, 2012 in New Delhi. Under the agreement, the CDB will reportedly make RMB-denominated loans available to the development banks of its BRICS counterparts, while the group’s other members will also be able to extend loans denominated in their respective currencies. The main objective of this memorandum is to expand trade relations among the BRICS countries, but it also represents another push by the Chinese government to promote the use of RMB in more foreign trade and financial transactions. Continue reading