Currencies, Emerging Markets, Stocks

BRICs Summit In Ufa To Unite Members For Development, Security

The upcoming BRICs and the Shanghai Cooperation Organization (SCO) summits would unite countries for development, peace and security of the region and world, visiting Chinese Foreign Minister Wang Yi said here [Moscow] Wednesday,” Xinhuanet reports.

Location of the Republic of Bashkortostan in Russia. Courtesy of Wikipedia.

Location of the Republic of Bashkortostan in Russia. Courtesy of Wikipedia.

During the meeting in Moscow with Sergei Lavrov, Russian FM, Mr Wang expressed his full support for the two summits hosted by Russia in Ufa, the capital city of the Republic of Bashkortostan, Russia.

According to Xinhuanet “Wang highlighted that against the background of weak world economic recovery and increasing hotspot issues, the BRICs countries — Brazil, Russia, India, China and South Africa — should unite for the promotion of world peace and security, and the democratization of international relations.

Wang called on the BRICs countries to strengthen global financial governance and facilitate the establishment and operation of the development bank and contingent reserve arrangement,” the news agency added.

Last month Russia proposed an alternate to the SWIFT global interbank payment system for the BRICs in a move which would further ramp up de-dollarization efforts and threaten the U.S. dollar’s global hegemony.

“Seriously speaking, there is no analogue to SWIFT at the moment in the world, it is unique. The only topic that may be of interest to all of us within BRICs is to consider and talk over the possibility of setting up a system that would apply to the BRICs countries, used as a backup,” Deputy Governor of Russia’s Central Bank Olga Skorobogatova said on May, 29th.

Western countries have withdrawn from BRICs countries more than $3.5 trillion over the last 10 years to suppress the group, said Russian Security Council Secretary Nikolay Patrushev, adding that nearly half of the sum was pulled out in the last 3 years.

BRICs New Development Bank (NDB) expected to be launched in 2015-2016 is a countermeasure to the Western financial pressure as the bank will provide economic resilience.

The NDB was established at most recent 6th BRICs summit in July 2014 by Brazil, Russia, India, China and South Africa. A $100 billion worth bank is expected to become a key lending institution, rivaling Western dominance in the financial sector.

The new BRICs initiatives break the monopoly of existing western institutions over the financial order – a very important symbolic change, as it’s the first time a global financial institution is led by developing countries.

“If the new development bank experiment succeeds, it will show the world that the emerging countries can do and manage a multilateral economic institution by themselves,” Akshay Mathur, geo-economic fellow head of research at the Indian Council on Global Relations, told RT at the BRICs academic forum.

About ETFalpha

Chief ETF Strategist & Co-Founder at EMerging Equity



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