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BRICS Bank shifts away from dollar, to issue 30% of loans in local currencies

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The New Development Bank (NDB), better known as the BRICS Development Bank, has announced plans to begin lending in South African and Brazilian currencies in order to reduce reliance on the US dollar.

The multilateral development bank was established in 2015 by the BRICS nations (Brazil, Russia, India, China and South Africa).

Dilma Rousseff, the bank’s president, spoke in a recent interview with Financial Times.

She also said the Shanghai-based lender was considering applications for membership from about 15 countries and was likely to approve the admission of four or five.

She declined to name the countries but said it was a priority for the NDB to diversify its geographic representation.

“We expect to lend between $8bn-$10bn this year,” Rousseff told the newspaper.

“Our aim is to reach about 30 per cent of everything we lend . . . in local currency.”

She said the NDB would issue debt in rand for lending in South Africa and do “the same thing in Brazil with the real. We’re going to try to either do a currency swap or issue debt. And also in rupees.”

Rousseff said lending in local currency would allow borrowers in member countries to avoid exchange rate risk and variations in US interest rates.

“Local currencies are not alternatives to the dollar,” she said.

“They’re alternatives to a system. So far the system has been unipolar . . . it’s going to be substituted by a more multipolar system.”

She said the bank has also tried to distinguish itself from the World Bank and the International Monetary Fund (IMF) by not setting lists of political conditions on loans.

“We repudiate any kind of conditionality,” Rousseff said.

“Often a loan is given upon the condition that certain policies are carried out. We don’t do that. We respect the policies of each country.”

Vice President Kashim Shettima is currently representing President Bola Tinubu at the 15th BRICS summit in South Africa.

The conference, which commenced in Johannesburg on August 22, will focus on issues of trade and investment facilitation, sustainable development, innovation, and global governance reform.

Nigeria is not a member of the BRICS club.

Business

5 tips to celebrate a low-budget Christmas

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December is here again, but things are three times more expensive than they used to be, if you squander your money in December, January is going to be a long month for you.

There are ways to have fun and still not overspend and here are some ways to make that effective;

One of the easiest ways to avoid overspending during the holiday season is to eat before heading out. Going out on an empty stomach can lead to impulse spending on food and drinks.

By ensuring you’re well-fed before leaving home, you can focus on enjoying the company of friends and family without succumbing to the temptation of unnecessary expenses.

Sharing the holiday spirit is not only joyful but can also be cost-effective. Going out in groups allows you to split bills and transportation costs.

Coordinate with friends or family members to plan group outings, ensuring everyone contributes something. This way, the financial burden is distributed, making it a win-win situation for everyone involved.

Transportation expenses can quickly add up during the holiday season. Instead of venturing too far from home for entertainment, explore local options within your neighborhood.

Whether it’s a community event, a local park, or a neighbor’s holiday gathering, staying close to home can save you money on transportation and make December a month that doesn’t empty your savings.

The allure of Christmas giveaways and promotions can be tempting, but it’s essential to separate wants from needs.

Before making a purchase, ask yourself if the item is genuinely necessary. If it’s something you won’t use or need in January and beyond, resist the urge to buy, even if it’s on sale. A discount is not a justification for unnecessary spending.

The holiday season often comes with invitations to various events and shows. While it’s natural to want to participate in everything, it’s crucial to prioritize your budget.

If you don’t have the financial means to attend certain shows or events, learn to say no.

Be unapologetic about setting boundaries that align with your budgetary constraints. Your financial well-being in January will thank you for it.

Celebrating Christmas on a budget doesn’t mean sacrificing joy and merriment. By adopting these practical tips, you can navigate the holiday season without overspending, ensuring that January doesn’t become a financially challenging month.

Embrace the true spirit of the season by focusing on meaningful experiences and cherished moments with loved ones.

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Business

NNPC signs two gas deals at COP28

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NNPC Limited says it has signed two gas deals at COP28. The deal covers a floating liquefied natural gas deal and a small-scale LNG deal at the ongoing COP28 in Dubai.

According to the company, the deal is both for Domestic, and International Markets.

There is an Agreement on 421 Tonnes Per Day Small-Scale LNG Project in Ajaokuta and MoU on Floating LNG.

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Business

Nigeria and Kuwait sign agreement for commencement of direct flights

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Festus Keyamo, minister of aviation and aerospace development, says the country has signed a bilateral air services agreement (BASA) with Kuwait.

BASA is an air transport agreement between two countries that allows designated airlines to operate commercial flights, covering transportation of passengers and cargoes.

The minister, in a post on Tuesday on ‘X’, said the agreement was signed at the ongoing international civil aviation negotiation (ICAN) event organised by the International Civil Aviation Organisation (ICAO), in Riyadh, Saudi Arabia.

He said the agreement would facilitate the commencement of direct flights (passengers and cargo) between both countries.

“Earlier today, at the ongoing International Civil Aviation Negotiation (ICAN) event of the International Civil Aviation Organization (ICAO) holding in Riyadh, Saudi Arabia, I signed the legal Instrument of Bilateral Air Services Agreement (BASA) on behalf of Nigeria with the State of Kuwait, for the commencement of direct flights (passengers and cargo) between both countries,” he said.

“This will boost trade, tourism and economic relations between both countries.

“My team and I will continue the negotiations of different routes with different countries that are present here for this annual event of ICAO till later in the week.”

On September 7, 2023, the federal executive council (FEC) approved the signing of the agreement between both countries.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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