China's de-dollarization efforts backfire as bank struggles to repay dollar debts.
The New Development Bank, established by the BRICS bloc of nations to reduce reliance on US dollar loans, is struggling to find dollars to repay its own debts, according to sources. The bank had to borrow from Wall Street as well as Chinese lenders to provide capital to developing economies, despite its mission to de-dollarize lending. After Russia's invasion of Ukraine last year, Wall Street backers were less willing to lend to a bank that was nearly 20% owned by Moscow. The bank is servicing prior debt through more expensive borrowings and is in talks with Argentina, Saudi Arabia and Honduras to become members and potentially provide more capital.
