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BRICS Bank July 17, 2014

Posted by hslu in China, Economics, Global Affair, Shanghai.
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If you don’t like being treated like a 2nd class citizen by IMF or World Bank, you now have another choice: BRICS bank or New Development Bank which will be headquartered in Shanghai, China. The New Development Bank, or the BRICS Bank, has five members: Brazil, Russia, India, China and South Africa. The initial funding base will be $100 billion with a reserve currency pool of additional $100 billion. It will be funded by its five members:

Brazil. $18 billion
Russia. $18 billion
India. $18 billion
China. $41 billion
South Africa $5 billion

If a country in stress wants to borrow from BRICS Bank, it has to wait until 2016.

Well, IMF and World Bank can’t do whatever they want now. They have to think twice because their monopoly is broken which is another sign suggesting the decline of the western power led by no other than, you guessed it, the United States.

My questions ares:

1. How many hundreds of tons of gold will they accumulate every year?

2. When will they start lending  out 人民幣?

With more countries joining the New Development Bank in the future, it will get more powerful.

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