South Africa’s rand strengthened on Friday after the New Development Bank signaled plans to expand lending in local currencies across BRICS economies later this quarter. The currency rose 0.6% against the U.S. dollar as markets reacted to the prospect of more financing in domestic money rather than hard currency.

The move could ease pressure on emerging-market borrowers that have faced higher funding costs and volatile exchange rates. Investors often view local-currency lending as a way to reduce exposure to dollar swings, especially in economies sensitive to capital outflows and tighter global financial conditions.

The bank’s comments added to optimism around financial support for BRICS members, though the scale and timing of the proposed lending expansion remain unclear. Traders will be watching for further details on implementation and whether the plan leads to broader demand for currencies such as the rand.

South Africa’s currency has been closely tied to shifts in global risk appetite, commodity prices, and expectations for foreign financing. Any sustained boost from the bank’s lending strategy will likely depend on execution and the broader outlook for emerging markets.