July 21, 2014
"The BRICS Bank Signals the End of the American Financial Empire and U.S. Dollar Hegemony" - by Dr. Nasser H. Saidi, Economist (pictured)
Establishing the BRICS Bank is a momentous event
The July 2014 BRICS (Brazil, Russia, India, China, South Africa) Summit was a momentous event, more important than the World Cup that also took place in Brazil. The BRICS sealed the deal towards the creation of the BRICS development bank and a US$ 100 billion reserve fund, labelled a "Contingency Reserve Arrangement" that promises to help developing nations avoid "short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements." The BRICS bank is expected to strengthen economic and financial relations and cooperation between the members of the BRICS group, promote mutual investments in addition to providing development funding in the BRICS group and in developing countries, with a likely focus on the African region. The BRICS bank will provide loans, guarantees, long-term credits and make equity investments. A major focus will be on infrastructure, aiming to address a yawning gap in infrastructure finance for the emerging economies.