The BRICS group of emerging economies has unveiled a new development bank, which is aimed at breaking the monopoly held by Western-backed institutions.
“It’s done,” said Pravin Gordhan, South African Finance Minister, on Tuesday, adding that “we made very good progress” on the formation of a World Bank-analogue development agency.
Finance ministers of the BRICS countries – Brazil, Russia, India, China and South Africa – met in Durban, South Africa for the opening of the fifth BRICS summit this week as leaders are expected to make an official announcement on Wednesday.
“Not long ago we discussed the formation of a developmental bank…Today we are ready to launch it,” said South African President Jacob Zuma on Monday.
China and Brazil agreed to trade in each other’s currencies just hours ahead of the BRICS summit in South Africa.
By shifting some trade away from the U.S. dollar, the world’s primary reserve currency, the two countriesaim to buffer their commercial ties against another financial crisis like the one that resulted from the collapse of the U.S. housing market bubble in 2008.
“Trade ties between China and Brazil are of great importance to the two countries’ economies amid global woes and the member states’ economic stability is vital for the BRICS mechanism,” said Zhou Zhiwei, a researcher with the Chinese Academy of Social Sciences, Xinhua reported.
Islamic Gold Dinar + BRIICS currency will break the neck of $ and €.