“Russian
President Vladimir Putin has endorsed a new treaty to establish a
$100-billion reserve fund for the BRICS group of five leading
emerging economies, consisting of Brazil, Russia, India, China, and
South Africa.”
“The
reserve fund is intended to shield the BRICS against 'short-term
liquidity pressures' and encourage greater financial cooperation
among the member countries. The emerging economies have planned to
establish their own international bank based in China’s major
financial hub of Shanghai in a bid to challenge western dominance
over international money markets.”
“Russia
-- which has suffered major currency fluctuations since the eruption
of the persisting conflict in Ukraine -- considers the reserve fund
as an alternative to Western-controlled international financial
institutions such as the IMF and the World Bank, which are dominated
by the United States and Western Europe.”
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