In the past several weeks ahead of the BRICS summit in Brazil a number of initiatives were unveiled by representatives of the BRICS economies. One of the more significant discussions centered on the expansion in the membership of the New Development Bank (NDB). According to the Deputy Finance Minister of Russia Sergey Storchak BRICS countries may give the green light to the expansion in the Bank’s membership at the BRICS summit in Brazil this year. In effect, the expansion in the membership of the...
New Development Bank and the Reserve Currency Pool
Many observers see the establishment of the New Development Bank (NDB) and the Reserve Currency Pool as a BRICS-led challenge to the International Monetary Fund and the World Bank, while the emergence of new financial stabilization mechanisms and development institutions appears to augment and strengthen rather than threaten the existing monetary and credit system.
The most prominent event of the 7th BRICS summit took place a day before the actual...
At the 7
th
BRICS Summit held on July 8-9, 2015 in the Russian city of Ufa, the leaders of the BRICS member states came together and signed several joint agreements including the ‘Ufa Declaration’, the ‘Ufa Action Plan’, the ‘Strategy for BRICS Economic Partnership’ and the ‘Memorandum of Understanding (MOU) on the Creation of the Joint BRICS Website’. The Summit is mostly overlooked in mainstream media such as the BBC and CNN, due to the European and...
... foreign currency and financial instruments. The general financial structures of the BRICS countries guarantee stability against the background of increasing instability. The emergence of major financial institutions such as the New Development Bank (the BRICS Bank) must certainly affect the activities of the IMF. Under the control of the BRICS countries, the bank carries out the same functions as the IMF and the IBRD, but for developing countries. However, when faced with opposition from these structures,...
During the sixth BRICS summit last week in Fortaleza, Brazil, the five BRICS countries agreed, as expected, to form both a development bank (named the New Development Bank) and a Contingency Reserve Arrangement (CRA). The agreements aim to minimize the role of traditional Bretton Woods institutions in the BRICS countries, and to lessen BRICS dependence on the US dollar as the global reserve currency. They mark the first true concretization of the BRICS partnership. Until now, the countries have formed...
