BRICS Bank set to begin operations from next month

The new currency reserve, similar to the World Bank and International Monetary Fund (IMF), will start functioning with the first meeting of its board of governors to be held in Moscow on July 7.

The Dollar Business Bureau

The BRICS New Development Bank set up by a grouping of five countries—Brazil, Russia, India, China and South Africa— will become operational from July 7. The new currency reserve, similar to the World Bank and International Monetary Fund (IMF), will start functioning with the first meeting of its board of governors to be held in Moscow on July 7, Russia’s Deputy Finance Minister Sergei Storchak reported to have said at the St Petersburg International Economic Forum (SPIEF) on Friday. The New Development Bank having initial fund of $100 billion is aimed at providing financial help to members of the BRICS in case of any emergency. India’s K V Kamath will be the first President of the bank to be headquartered in Shanghai. During BRICS Business forum in Russia on Thursday, the newly set up bank’s Vice President Paulo Nogueirga Batista, who is also Brazil’s envoy to the IMF, said that the BRICS members are “not fully satisfied with the international financial architecture, not fully satisfied with the role that our countries are allowed to have at the IMF and the World Bank”. “Our countries are very active in IMF. We work together at the IMF. Despite this active involvement in the Washington institutions, our countries have begun to realize that we need to do our own thing,” Batista was quoted to have said in a report. Meanwhile, Russian President Vladimir Putin said that the new reserve currency pool will complement the existing global financial institutions. He also said that all the BRICS members had a good relationship with the World Bank and the IMF. Later on, the new bank is expected to open membership to non-BRICS countries. Reports say that the setting up of the new institution coincides with China’s plan to form an infrastructure development bank for Asian countries.  

June 20, 2015 | 05:51 pm IST.

The Dollar Business Bureau - Jun 20, 2015 12:00 IST
 
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