March 9, 2012
China is reportedly to begin extending loans in yuan to BRICS countries in another step towards internationalizing the national currency and diversifying from the US dollar.
ÂThe Chinese Development Bank wants to sign a memorandum of understanding with the country’s partners from BRICS group of developing countries on increasing yuan-denominated loans, while partners increase loans in their national currencies, The Financial Times reports, citing people familiar with the talks.
The move aims to increase trade volumes between the five nations and diversify from using the US dollar.
Brazil and South Africa were quick to react to the proposal, saying they expect the lending pledge to be included into a master agreement to be signed in New Delhi on March 29.