---
title: "NDB Local Currency Lending: BRICS Bank Explained"
description: "NDB local currency lending allows the New Development Bank to issue loans in member states' currencies, reducing exchange-rate risks for borrowers."
url: "https://modeldiplomat.com/learn/glossary/new-development-bank-local-currency-lending"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- NDB local currency lending is the New Development Bank's practice of issuing loans denominated in member states' national currencies rather than US dollars to reduce borrowers' exchange-rate exposure.
- What share of NDB financing is meant to be in local currencies?
- How does local currency lending protect borrowers?
- Is NDB local currency lending the same as the BRICS Contingent Reserve Arrangement?
- Why has renminbi dominated NDB local currency issuance?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

NDB local currency lending is the New Development Bank's practice of issuing loans denominated in member states' national currencies rather than US dollars to reduce borrowers' exchange-rate exposure.

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## Timeline

1. 15 July 2014

   The practice flows directly from the bank's founding instrument, the Agreement on the New Development Bank signed at the Sixth BRICS Summit in Fortaleza on…

2. 3 July 2015

   The practice flows directly from the bank's founding instrument, the Agreement on the New Development Bank signed at the Sixth BRICS Summit in Fortaleza on 1…

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In July 2016 the New Development Bank issued its inaugural RMB 3 billion green financial bond on China's interbank market, the first deployment of its local currency lending model to fund renewable-energy projects.

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