BRICS (consisting of Brazil, Russia, India, China and South Africa) is planning to launch a new Development Bank. The idea formally launched last March in a summit meeting of the leaders of the five emerging economies.
Presently a working Group has been set up, which will submit a report to the five finance ministers of the country, who will work on the final draft, before submitting it to the heads of the Govts. coming March at the summit in Pretoria in South Africa. While initially the World Bank was a bit doubtful of its viability has now officially stated that it will work in partnership with any such Bank. There are a number of challenges, including conflicting interests. For example China has been promoting the international status of its currency, Yuaan. Brazil already has a large development Bank, while India wishes to bring in more capital in the country. However consensus is emerging on a number of other issues, like the amount that each country will commit to the Bank. The Bank is likely to have a committed capital of around $240-250 billions. Further other areas where the Bank will be hosted is yet to be decided, though it is decided that it will be one of the BRICS country.
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