De-Dollarization: Russia Ratifies $100 Billion BRICS Bank
A BRICS Bank - as an IMF alternative and to enable nations to become less dependent on the global reserve currency - was originally discussed at The BRICS Summit in 2012. Then at the 2014 BRICS Summit, the framework for The BRICS Bank was approved as "a system of measures that would help prevent the harassment of countries that do not agree with some foreign policy decisions made by the United States and her allies." Headquartered in Shanghai and chaired by Russia, this week saw what appears to be the final step in the creation of BRICS New Development Bank as RT reports, The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa. It is expected to start fully functioning by the end of 2015. Isolated?
The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.
The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.
Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.
It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.
The bank’s board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors, according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.
The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.
The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.
Simply put, as Sovereign Man's Simon Black warns, "when you see this happen, you’ll know it’s game over for the dollar.... I give it 2-3 years."
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LOL, the only thing I see that is disconcerting is that China and India are involved. What have we done to India besides get them not to kill and sell skeletons of their babies and abusing women? As for Chinas, it has been important for China and the US to keep trade relations since both sides are part of a larger problem of overspending and dependence on foreign trade. China cuts its own throat if it wants to end this relation just like the US does if it wants to end it.
If these countries think financial independence comes through Russia they are gravely mistaken. Isolation and a bad economy is the only thing that will result. Russia wants and needs money more than any of these other countries and wants to launder its trade through others since it's being punished for assisting in the murder of Ukrainians. Ukraine isn't an internal strife war, it's a subversive invasion. It's about time Europe and the US take concrete actions or else it will end much like when they did nothing about Hitler's invasions.