The emerging economies signed a long-anticipated document to create a $100 billion BRICS Development Bank. The institution will counter the influence of Western lending firms as well as the dollar.
The new bank will provide money for infrastructure and development projects in BRICS countries. Each country will send either their finance minister or Central Bank chair to the bank’s board.
Leaders from the five nations - Russia’s President Vladimir Putin, Brazil’s Dilma Rousseff, China’s Xi Jinping, India’s Narenda Modi, and South Africa’s Jacob Zuma, gathered in Brasilia, Brazil. The meeting is the first BRICS summit for India’s newly elected PM Modi, and the 6th overall.
Each BRICS member is expected to put an equal share into establishing the startup capital of $50 billion with a goal to reach $100 billion. The BRICS bank will be headquartered in Shanghai and India will serve as first chair.
The big launch of the BRICS bank is seen as a first step to break the dominance of the US dollar in global trade, as well as dollar-backed institutions such as the International Monetary Fund (IMF) and the World Bank, both US-based institutions BRICS countries have little influence within.
Membership may not just be limited to just BRICS nations, either. Future members could include countries in other emerging markets blocs, such as Mexico, Indonesia, or Argentina, once it sorts out its debt burden.
The group has already created the BRICS Stock Alliance an initiative to cross list derivatives to smooth the path for international investors interested in emerging markets.
BRICS represents 42 percent of the world’s population and roughly 20 percent of the world’s economy based on GDP, and 30 percent of the world’s GDP based on PPP, a more accurate reading of the real economy. Total trade between the countries is $6.14 trillion, or nearly 17 percent of the world’s total.
I wonder how that will effect the US and Canadian Dollar??
6th BRICS summit - Wikipedia, the free encyclopedia
The 6th BRICS summit will be the sixth annual diplomatic meeting of the BRICS, a grouping of major emerging economies that includes Brazil, Russia, India, China and South Africa.
Iran and many countries wanted to end OIL being traded in US currency.. it'll kill the US economy..
Russia, China sign deal to bypass U.S. dollar | Al Jazeera America