Post by TsarSamuil on Jan 27, 2015 21:07:09 GMT -5
Washington will do whatever it can to stop BRICS, maintain power - economist.
RT America Jan 27, 2015
China is warning India that an economic partnership with the US is a “zero-sum trap,” and the nation should be wary about Washington’s increasing efforts to court the increasingly influential nation. The message comes as world leaders, including President Barack Obama, gather in India to celebrate its “R-Day” holiday and woo top officials to their side in an expanding effort to gain the most influence in the region. Though the US has for decades maintained the top spot in the world in terms of economic power, the increasingly popular BRICS bloc—of which India and China are members—has American officials worried about their ability to exert power, as former Reagan administration official Paul Craig Roberts explains.
Post by TsarSamuil on Jan 28, 2015 15:41:27 GMT -5
BRICS to discuss creating new rating agency in March - Brazilian ambassador.
RT.com January 28, 2015 13:04
The contact group of BRICS experts will meet in March to discuss the idea of establishing an independent rating agency, said Brazilian Ambassador to Russia Jose Vallim Antonio Guerreiro. The agency would become an alternative to the western ‘big three’.
"A contact group on economic and trade issues is working at the expert level. The proposal to establish a rating agency within the BRICS has been placed before its consideration, and will be discussed in more detail in March at the next meeting of the contact group,” the diplomat said in an interview to RIA Wednesday.
Guerreiro said it’s early to predict the outcome of the meeting, as every decision should be weighed carefully. Still, in his view “such a possibility exists." The question is how the procedures of existing rating agencies can be applicable to all economies, he said.
"The question is whether this procedure includes all the relevant factors. You may need to look for alternative indicators and broad approaches to assess the ‘health’ of economies,” he said. “I do not believe that the new agency will be something to resist the existing institutions. They do their job, and certainly, there is a demand for their services. But it is possible that the BRICS countries will elaborate a different approach.”
International rating agency S&P on Monday downgraded the sovereign credit rating of Russia below the investment rate to BB + with a negative outlook, saying Russian monetary policy became less flexible, and left open the possibility of further deterioration.
Earlier S&P downgraded the credit rating of Brazil from BBB to BBB-, leaving it a notch above the ‘junk’ grade.
The idea of creating an alternative to the western rating agencies becomes more relevant. Earlier in January Russia and China announced establishing a joint rating agency which, both countries believe, will balance the global economic outlook.
Rating agencies Standard & Poor's, Fitch and Moody’s announced a negative macroeconomic outlook for Mercosur in 2015. The common market of the South America includes Argentina, Uruguay, Paraguay, Brazil and Venezuela.
Post by TsarSamuil on Jan 28, 2015 16:31:24 GMT -5
Chinese yuan now top 5 major intl payment currency.
RT.com January 28, 2015 15:20
The Chinese currency is the 5th most-used currency in international payments, according to the SWIFT network responsible for international financial transactions. Breaking into the top 5 is symbolic to balance dollar-denominated payments.
In 2014, yuan payments doubled by 102 percent, and increased by 20.3 percent in December alone, compared to the same time period last year, SWIFT said Wednesday. The yuan, or renminbi, surpassed the Canadian and Australian dollars.
"It is a great testimony to the internationalization of the renminbi and confirms its transition from an 'emerging' to a 'business as usual' payment currency," Wim Raymaekers, Head of Banking Markets at SWIFT said in a statement.
2.2 percent of all SWIFT payments made in December were yuan-denominated, according to the Brussels-based payment operator. Ahead of the yuan are the US dollar, euro, British pound, and Japanese yen, which has a 2.7 percent share.
The US dollar and euro still remain king in the international world of finance, with the dollar accounting for 44.6 percent of SWIFT payments and the euro 28.3 percent. The British pound is in third place with 7.9 percent.
The yuan isn’t included in the International Monetary Fund’s currency basket, but the new rating may increase its chances.
China is expected to make another push for the inclusion of the yuan in the International Monetary Fund's in-house currency basket in a review later this year - and this time round its G20 partners may be willing to listen.
The world’s second largest economy has been pushing the yuan as a rival to the dollar in the global financial system since 2010, opening up yuan clearing hubs in London and Frankfurt.
China has reduced controls over the yuan exchange rate and is gradually moving towards making it a global trading currency.
Russia, India and China: Cooperating in unstable world.
Dr Alexander Yakovenko, Russian Ambassador to the United Kingdom of Great Britain and Northern Ireland, Deputy foreign minister (2005-2011).
RT.com February 03, 2015 19:06
On February 2, the foreign ministers of Russia, India and China met in Beijing to discuss a wide range of international and regional issues.
They confirmed that the views of the “troika” on the international situation and ways to promote trilateral cooperation in the existing circumstances are very close if not identical.
The ministers believe the world today is becoming less secure and less predictable. They agreed to support the on-going formation of a polycentric world order that reflects the geographic and civilizational diversity of our world. The current situation makes us believe that a substantial restructuring of the global governance model is underway. Under these circumstances, no single country or isolated group of countries has the resources or capabilities to resolve the various problems of the world short of collective action of all stakeholders concerned.
It is only by reaching consensus amongst the major power centers, involving the broadest possible range of states, and promoting network diplomacy and flexible partnership structures, that a global architecture of comprehensive, equal and indivisible security can be established to combat terrorism and other common threats. It is these principles that underlie the operation of the RIC Troika, united by their endeavor to promote a fair and democratic system of international relations on the basis of the rule of law, equal partnership between states and respect for the principles and goals of the UN Charter.
Russian Minister Sergey Lavrov stressed the RIC format, which gave an impetus to creating BRICS, retains its own added value. This format is supported by all, and will be further expanded both in terms of developing general policy approaches to the pressing issues of our time, and when it comes to enhancing trilateral and practical cooperation in areas of common interest.
BRICS bank legislation submitted to Russian parliament.
RT.com February 04, 2015 10:47
The Russian government has submitted a bill to lawmakers to ratify the BRICS bank. The New Development Bank will have assets of $100 billion from Brazil, Russia, India, China and South Africa and rival the World Bank and International Monetary Fund.
The New Development Bank agreement will come into force only after all five countries ratify the legislation.
"The agreement envisages the creation of a multilateral financial institution, the New Development Bank, that will finance infrastructure projects and sustainable development projects in BRICS countries and developing countries," says a briefing note obtained by TASS.
The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and Russia will be the chairman of the representatives. Each country holds an equal voting share, and the bank is available to United Nations members.
The Russian government approved the draft law on January 29.
At the BRICS summit in Fortaleza, Brazil, in July, the five developing countries established the $100 billion bank, as well as a $100 billion currency pool. The funds will go towards funding infrastructure and development projects in the five emerging economies.
The three biggest BRICS economies China, India, and Russia are also banding together on the ‘One Belt, One Road’ project- a reincarnation of the Silk Road- aimed at reestablishing the economic corridor across Eurasia.
Another project may include creating a BRICS rating agency. Experts will consult on the matter in March.
BRICS countries to set up green fund: Russian official.
English.news.cn 2015-02-07 00:06:53
NEW DELHI, Feb. 6 (Xinhua) -- The BRICS countries are envisaging a green fund under a New Development Bank to finance green projects and develop green technologies for sustainable development, said a Russian official here Friday.
This will be part of the discussions during the BRICS environmental ministers when they meet in April in Russia, said visiting Russian Minister of Natural Resources and Environment Sergei Donskoi, who was here attending an international conference on sustainable development organized by India.
"During the BRICS meeting of environment ministers (in Moscow), we have chosen specially the topic of development of green economy and adopt resolution of environmental problems and competitiveness of business in the context of green economy," said Donskoi.
The New Development Bank of BRICS, to be based in Shanghai, will have a fund of 100 billion U.S. dollars to promote economic and technological cooperation among members and with non-members, especially developing countries.
The BRICS countries comprise Brazil, Russia, India, China and South Africa.
Post by TsarSamuil on Feb 20, 2015 14:04:17 GMT -5
Russia ratifies $100bn BRICS New Development Bank.
RT.com February 20, 2015 14:12
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.
Post by TsarSamuil on Feb 27, 2015 22:50:02 GMT -5
Moscow confirms India considering free trade zone with Eurasian Economic Union.
RT.com February 27, 2015 14:38
India has proposed creating a free trade zone with the Eurasian Economic Union of Russia, Kazakhstan, Belarus and Armenia, said Alexey Pushkov, head of the International Committee of Russian State Duma.
"The question was raised by India, which is now considering a free trade agreement with the Eurasian Economic Union. This is a new level in our relationship. The possibility is being discussed," he told reporters Friday during an official visit to New Delhi.
On Thursday TASS reported that India will start negotiating a comprehensive free trade agreement with the Customs Union of Russia, Belarus and Kazakhstan within the next six months.
The Eurasian Economic Union of Armenia, Belarus, Kazakhstan and Russia started functioning in January 2015.
The organization was created on the skeleton of the Customs Union of Russia, Kazakhstan and Belarus is aimed at improving regional economic cooperation. The group has a population of 171 million people and a GDP of nearly $3 trillion. In the near future the union is expected to be joined by Kyrgyzstan.
China has also said it is willing to join a free trade zone with Eurasian Economic Union.
Post by TsarSamuil on Mar 10, 2015 20:40:09 GMT -5
China's mega international payment system is ready, will launch this year - report.
RT.com March 10, 2015 10:17
The China International Payment System (CIPS) is due to kick off this year, bringing the yuan a step closer to becoming a global trading currency, as the new system will make payment transfers just as easy as in dollars and euro.
The launch is expected in September or October, depending on how tests go, a source told Reuters. Another person with direct knowledge of the matter said the goal is to start the first phase before December, Reuters reported.
"The CIPS is ready now and China has selected 20 banks to do the testing, among which 13 banks are Chinese banks and the rest are subsidiaries of foreign banks," one of the sources told the agency.
CIPS will use the same coding system as other international payment systems, which will make transactions more fluid and rapid. The super-network will consolidate and replace the existing multiple clearing houses that process yuan payments, and will rival majors like Visa and MasterCard.
The move should help bump the yuan’s presence on the international stage, as the payment system will make it faster and easier to carry out cross-border transactions using the Chinese currency.
It’s the fifth most-used currency in international payments, according to the SWIFT network. In December 2014, about 2.17 percent of payments were made in yuan, up from 0.63 percent in 2013.
For a while China has been exploring methods to cut dependence on the dollar and other hard currencies in international trade, hoping to settle more deals in yuan.
China, the world’s second biggest economy, grew by 7.4 percent in 2014, but has trimmed its 2015 forecast to seven percent, the lowest growth rate in the last 25 years. Despite the slight slowdown, it is still expected to be the fastest growing economy of 2015, according to a poll of economists by Bloomberg.
Post by TsarSamuil on Mar 10, 2015 20:42:19 GMT -5
Putin signs law on ratification of $100 billion BRICS New Development Bank deal.
RT.com March 09, 2015 14:30
Russian President Vladimir Putin has signed a law ratifying the deal establishing the BRICS New Development Bank (NDB), according to a document published on Monday on Russia's official website for legal information.
The BRICS New Development Bank (NDB) was set up to challenge two major Western-led giants – the World Bank and the International Monetary Fund. NDB's key role will be to serve as a pool of currency for infrastructure projects within a group of five countries with major emerging national economies - Russia, Brazil, India, China and South Africa.
According to the Russian Finance Ministry, the New Development Bank is expected to start functioning fully by the end of the year, with the headquarters slated for opening in Shanghai. The chairmanship, with a term of five years, will rotate among the members.
It's hoped the new bank will stamp the growing influence of the BRICS. The NDB is expected to become one of the world's key institutions, with a stated capital of $100 billion. 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. Russia has agreed to provide $2 billion from the federal budget for the bank over the next seven years.
The bank, which will be able to start lending in 2016, will be open to other countries that are members of the United Nations. The BRICS share is never to decline below 55 percent, however. The money will be used to finance development projects in the emerging economies.
India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will be Brazilian.
The bank was first proposed in 2012. The signing of the agreement to create the joint development bank by the heads of the five countries took place at the BRICS summit in Fortaleza, Brazil, in June 2014.
The lower chamber of the Russian parliament, the State Duma, ratified the agreement on the NDB establishment last month.
Last Edit: Mar 11, 2015 21:20:56 GMT -5 by TsarSamuil
Post by TsarSamuil on Mar 13, 2015 22:23:56 GMT -5
Britain’s membership in China-led World Bank rival of ‘UK national interest’ - spokesman.
RT.com March 13, 2015 12:25
The UK government considers membership of the China-led Asian Infrastructural Investment Bank (AIIB) of British national interest. However, the decision was given the cold shoulder by the US which sees the AIIB as rival to the Western financial system.
"There will be times when we take a different approach (to the United States)," as Reuters quotes a spokesman for Prime Minister David Cameron as saying Friday, referring to the decision to join the bank. "We think that it's in the UK's national interest."
On Thursday the UK applied to become the first Western founding member in the AIIB, with the UK Chancellor of the Exchequer George Osborne assuring that its policy is transparent and it has an essential part in providing finance for Asian development.
"Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together," Osborne said.
The UK Treasury rejected the idea that Britain’s decision was spontaneous, adding that there had been “at least a month of extensive consultation” at the G7 level, and even that US Treasury Secretary Jack Lew participated in the negotiations.
However, the decision saw a prompt reaction from the US, said the FT on Thursday referring to an unnamed senior US official who expressed concern over the British decision being taken after "virtually no consultation with the US.”
"We are wary about a trend toward constant accommodation of China," the FT quoted the US official as saying.
AIIB was founded in October 2014 by China and 20 other Asian countries, including India, Singapore, Vietnam, and Kazakhstan. China expects to officially launch AIIB by the end of next year. The bank will allocate money for the development of roads system, telecommunication and other infrastructure projects in the poorer regions of Asia. At the initial stage AIIB will focus on creating a ‘New Silk Road’ that will include a number of trade routes to Europe.
Asia gaining momentum
The establishment of AIIB initially proposed by Chinese President Xi Jinping is a key tool in China's efforts to increase its influence in the region. In addition to the AIIB, China is the driving force behind last year’s creation of a BRICS New Development Bank and is promoting a $40 billion Silk Road Fund to finance economic integration with Central Asia.
The bank is aimed at creating an alternative for Western financial institutions and increase competition in the region, since Asia already has a major lender the Asian Development Bank. Japan, China’s major rival in the region, is the biggest shareholder in ADB along with the US.
The idea of creating a bank to rival the Asian Development Bank has caused resistance from the United States, which called for its allies to stay away from the AIIB.
Japan, Australia and South Korea haven’t announced their decisions, while the Australian media reports that Washington has put pressure on Canberra not to participate.
South Korean Vice Finance Minister Joo Hyung Hwan told reporters on Thursday that his country is still discussing the possibility of membership with China and other countries.
Changing attitude to China
In 2013 during a visit to Beijing George Osborne said he wanted to “change Britain’s attitude to China.”
The issue of bonds in yuan by the UK government in October 2014 was the first by a Western government. The desire to establish the City of London as a platform for overseas business in the yuan also proves Britain’s willingness to foster stronger commercial relations with China.
However, the pursuit of broader cooperation has seen a negative reaction coming from US, as it fears the rapidly developing Asian economies, primarily China, could challenge Washington-based global institutions.
The relationship between the US and UK have been at the core of Western policy for decades, although they’ve recently become tense over the UK’s cut in defense spending that could soon drop below the 2 percent of GDP target set by NATO.
Australia ponders ‘vote of confidence’ on joining China-led bank, Japan on fence.
RT.com March 20, 2015 14:46
Australia has signaled its intention to become a member of the China-led Asian Infrastructure Investment Bank (AIIB) after the UK and EU major members’ decision to join. However, Japan is hesitating over its position.
Canberra shows signs of possible joining, Reuters reported on Friday, although no formal decision has been made. Australia rejected China's proposal last year, but is now signaling its intention to join the bank with an investment of $2.3 billion, according to Chinese Xinhua news agency. Meanwhile, Japan, China’s main regional rival, suggested it could become a member of the institution if certain conditions are met.
After a cabinet meeting on Friday, Finance Minister Taro Aso told reporters Japan “could consider entering talks” on joining the AIIB if some of its concerns about lending standards and the bank’s governance were addressed, the Financial Times says. Japan is hesitant to join the China-led bank over its relations with Washington and over the AIIB's potential rivalry with the Asian Development Bank.
"Views are split within the Japanese government on whether to join the AIIB,"a person with close knowledge of Japan's financial policy-making was cited as saying by Reuters.
Considering the standoff within the government of Japan, the country’s participation "is not going to happen under the Abe administration,” according to a senior official in the ruling coalition.
The possible move comes after EU major members France, Germany and Italy confirmed on Tuesday they will become founding AIIB members in the wake of Britain's application last week. This is despite the increasing pressure and negative reaction from the United States.
While the new China-led bank is expected to challenge the Western dominance of the US-led World Bank and the IMF, Washington expressed concerns that the new investment bank might not have high enough standards of governance and environmental and social safeguards.
The AIIB is also a potential rival of the Asian Development Bank (ADB), the Manila-based multilateral institution dominated by Japan and the United States. The new bank can amount to diminish the Japanese influence in favor of China in the Asia Pacific region.
After the collapse of Soviet Union the United States as a single superpower with the IMF and the World Bank at its disposal used those institutions as a way to help its own operations and did not help people from other countries, chief economist at a major international consulting firm John Perkins, who has advised the World Bank, UN, IMF, and US Treasury Department, told the Sputnik Radio.
“China’s stepping in to offer an alternative now and much of the rest of the world welcome this opportunity. It’s a real shift in financial power now around the globe,” Perkins added.
Meanwhile, South Korea is reportedly ready to announce its entry to the AIIB in the near future, Xinhua reported. Switzerland and Luxembourg are also considering joining. Twenty-seven countries had applied to jointly build the bank as founding members. The application deadline is March 31.
With an expected initial subscribed capital of $50 billion, the AIIB will be an international financial institution to fund infrastructure projects in Asia and is expected to be formally established by the end of this year.
Switzerland, Luxembourg apply for China-led infrastructure bank.
RT.com March 21, 2015 16:03
Despite negative noises from the US, Switzerland and Luxembourg have become the latest European nations to apply to join the Beijing-led Asian Infrastructure Investment Bank (AIIB), the Chinese Finance Ministry announced.
Earlier in March, the EU’s leading economies – the UK, France and Germany –announced plans to participate in the new international financial institution.
China's Finance Ministry released a statement on Friday saying it welcomes the Swiss decision to apply.
Switzerland is to become the bank’s founding member later this month if other nation members involved approve its candidacy.
The ministry released a separate statement on March 20, saying Luxembourg also wants to join the China-led project.
The AIIB has already gathered together 27 "prospective" founding members, Chinese Finance Minister Lou Jiwei told the local Xinhua news agency.
The application deadline for membership is March 31, with China planning for the AIIB to become operational before the end of 2015.
According to Lou, other nations will still be able to join the AIIB after the deadline expires, but only as common members.
The institution is expected to boast an initial subscribed capital of $50 billion and focus on supporting infrastructure projects across Asia.
Head of the Organization for Economic Co-Operation and Development (OECD), Angel Gurria, praised the European states for their participation in the bank.
"The fact that some of the European countries are now associating with the project makes me even more convinced that it is going to be run in a very professional, transparent way," Gurria is cited as saying by AFP.
However, US officials have been skeptical, expressing fears that it may undermine the World Bank and the International Monetary Fund (IMF).
US Treasury Secretary, Jacob Lew, stressed Washington has doubts if the China-led bank will be able to “adhere to the kind of high standards that the international financial institutions have developed.”
"Will it protect the rights of workers, the environment, will it deal with corruption issues appropriately?" Lew asked.
But the Chinese finance minister gave an assurance that the AIIB will not compete with existing international organizations.
"History revisited, the establishment of regional investment banks including the ADB (Asian Development Bank) and the European Bank for Reconstruction and Development did not weaken established (institutions), rather they reinforced the multilateral financial organizations and more vigorously pushed forward the global economy," Lou stressed.
According to the minister, China will remain an important member of the World Bank and the ADB, continuing to support their efforts towards global poverty relief and development.
Support of China’s development bank is ‘gigantic concession’ by US.
RT.com March 24, 2015 17:17
Washington and the World Bank have no choice but to co-operate with Beijing on the new China-led development bank. The US has changed its tune after first opposing its allies cozying up to China.
“This is a gigantic concession on the part of the US, that it is not the world’s only superpower,” Jeffrey Albert Tucker, CLO of the Foundation for Economic Education, told RT.
Instead of fighting the new China-led development bank, the US was forced to add its support to the development bank after allies jumped ship to join the $100 billion China-led project that could rival the World Bank.
“This represents a dramatic shift on the part of Washington and a concession to its allies in Europe,” Tucker said.
US officials had voiced displeasure when the UK, Germany, France and Italy agreed to work with the Bank, but now, in an apparent concession, the US will work with, and not against, the new global development fund. The White House wants to co-finance projects with Beijing along with existing banks such as the World Bank, the WSJ reported Monday.
The offer is a massive U-turn in Washington's stance on the Asian Infrastructure Investment Bank. The tone quickly changed last week after an unnamed US official told the Financial Times that America was “wary about a trend toward constant accommodation of China.”
Chinese state newspaper lambasted the comment, calling the attitude towards China childish paranoia.
“Essentially there was no more of this cold war attitude that the US was having towards China. Was boycotting the AIIB, but it received massive pushback from very important governments around the world, so the US did not get its way,” Tucker said.
The British government was the first to announce that they would be a founding member of the financial institution, which is largely seen as a rival to the World Bank. Luxembourg and Switzerland were the latest to sign up along with France, Germany, and Italy.
Similar to the World Bank, the Asia Infrastructure Investment Bank (AIIB) will offer financing for infrastructure projects, but mostly in the Asia, especially in developing economies.
The bank was launched in October 2014 and is due to be fully operational by the end of 2015.
“What people in the US have yet to recognize, is that China’s economy is probably by some measures as big, or bigger than the US, and the US needs to start engaging China as a partner.”
The Chinese economy has been keeping pace with the world’s biggest, the US, and in October, surpassed the superpower in terms of purchasing power adjusted GDP
The idea for the new development bank was first floated when China unveiled plans in October 2013.
Austria wants to be part of China-led infrastructure bank.
RT.com March 25, 2015 00:43
Austria is looking to join the China-led Asian Infrastructure Investment Bank (AIIB), Xinhua news agency reported, citing a top official. It is the latest European nation to invest in the bank, which is seen as the future rival of the US-based World Bank.
“Austria has already had close economic and political ties with the Asian region and has always been so far very positive about international projects,” Johannes Frischmann, a spokesman for Austrian Finance Minister Hans Joerg Schelling, told Xinhua, adding that the nation “now checks for the membership.”
The AIIB has been approached by 27 prospective founding members, with the UK, France, Germany, Italy, Luxembourg, and Switzerland recently applying. The application deadline has been set for March 31.
Other nations will still be able to join the AIIB after the deadline expires, but only as common members, Chinese Finance Minister Lou Jiwei said last week.
China wants to see the AIIB operational before the end of 2015.
Washington recently shifted its tone towards the AIIB, which is seen as a rival of the US-led World Bank, the International Monetary Fund (IMF), and the Manila-based Asian Development Bank (ADB) which is dominated by Japan and the US. Previous reports implied that there was a negative reaction from Washington; however, it has now proposed to work in partnership with the AIIB, according to The Wall Street Journal.
US officials have been skeptical, expressing fears that it may undermine the World Bank and the IMF. However, the Chinese finance minister gave assurances that the AIIB will not compete with existing international organizations, but will instead reinforce them.
The International Monetary Fund, World Bank, and Asian Development Bank have also expressed their support for the China-led international bank.
IMF chief Christine Lagarde said on Sunday that the fund would be "delighted" to cooperate with the AIIB.
The China-led infrastructure bank is expected to launch with an initial subscribed capital of $50 billion and focus on financing infrastructure projects across Asia – including energy, transport and telecommunications infrastructure, urban and rural development, and the environment.
Last Edit: Mar 27, 2015 21:04:06 GMT -5 by TsarSamuil
Post by TsarSamuil on Mar 25, 2015 22:59:15 GMT -5
New realities: Parliamentary BRICS.
Dr Alexander Yakovenko, Russian Ambassador to the United Kingdom of Great Britain and Northern Ireland, Deputy foreign minister (2005-2011).
RT.com March 24, 2015 14:37
The idea to establish a parliamentary forum emerged as a result of the active development of diverse cooperation within the framework of BRICS.
Leaders of the member-states regularly hold top-level meetings. A new BRICS bank – New Development Bank – is being currently established. The BRICS countries are united by their aspiration to make common cause on issues concerning global development and shaping a global financial architecture that meets the requirements of the 21st century. They actively cooperate within the G20, and contribute substantially to its agenda. There are currently 25 areas where BRICS cooperate. So it would be logical to add a parliamentary dimension to them.
Traditional European parliamentary forums, on their part, cover only Europe or the OSCE space at most. They do not operate outside these regions.
The BRICS parliamentary forum could address in earnest such questions and promote such values as sovereignty and independence of states, prevention of change of government by means of outside interference.
BRICS member-states possess their common denominator of values that differs significantly from the Euro-Atlantic one, which over the last decades has largely mutated towards hyper-liberalism. The forum could provide a framework for discussion of possible ways of resolution of regional conflicts and reforming the existing international institutions, for example, the IMF. According to Russian parliamentarian Alexey Pushkov, practice shows that discussion of these questions on traditional European platforms lead nowhere. The majority, guided by Euro-Atlantic discipline, would block any draft resolutions containing assessments that differ from these narrow-minded attitudes, stuck in the Cold War past.
It is also important that BRICS have no military dimension as it pursues exclusively political, economic and financial tasks; it is these problems that come to the fore at this critical junction of global development. Its members do not wish to set artificial limits on their partnerships or to be rigidly tied by external alliances, making emphasis on network diplomacy instead. Also, there is concurrence of interests in the field of security as there is convergence in the understanding of current conflicts.
The first parliamentary forum of BRICS initiated by Russia will be held in Moscow in early July. Countries from three continents, which together enjoy 42 percent of the world population and 27 percent of the global GDP, will be represented there.
Boosting Bilateral Ties: Russia Vows to Join Chinese-led Development Bank.
WORLD 10:22 28.03.2015
Russia has signaled its readiness to take part in the China-led Asian Infrastructure Investment Bank (AIIB), in a move that will most likely bolster bilateral relations.
Russian Deputy Prime Minister Igor Shuvalov has said that his country is ready to join the China-led Asian Infrastructure Investment Bank (AIIB), media reports said.
"I would like to inform you that Russian President Vladimir Putin has made a decision on Russia’s participation in the capital of the Asian Infrastructure Investment Bank", Shuvalov said.
He added that Russia hails China’s Silk Road Economic Belt initiative and is poised to bolster cooperation between the Eurasian Economic Union and China.
Shuvalov spoke during the 2015 annual Boao Forum, which is being hosted by China under the title ‘Asia’s New Future: Toward a Community of Common Destiny.’ High on the agenda is a host of pressing issues related to macroeconomics, technological innovation, politics, security and regional development.
The AIIB is an international financial institution which was established in 2014 at the behest of the Chinese government. Beijing wants to see the bank operational before the end of this year. The authorized capital is expected to total about 100 billion dollars.
The AIIB includes 27 prospective founding members; Britain, Germany, France, Italy, Switzerland and Luxembourg recently indicated their intent to join the bank. Australia and South Korea are also considering submitting the application; Australia initially declined at the request of the United States, but was compelled to reconsider following the UK's decision. The deadline is due to expire on March 31.
The AIIB is seen by some as a rival to the International Monetary Fund, the World Bank and the Asian Development Bank, which are dominated by developed countries like the United States and Japan.
In light of this, US Treasury Secretary Jacob Lew said last week that America’s “international credibility and influence” is under threat as China seeks to set up the AIIF and draw support from staunch US allies.
BRICS leadership passes to Russia, $100bn development bank ‘main priority’
RT.com April 01, 2015 13:21
As Russia assumes the chairmanship of the BRICS business council, the launch of the New Development Bank for its members will begin as an alternative to the US-dominated International Monetary Fund (IMF).
Sergey Katyrin, President of the Russian Chamber of Commerce, took over the chairmanship of a business council of BRICS, an economic association made up of Brazil, Russia, India, China and South Africa, on Wednesday.
The seventh summit of BRICS will be held in the southern Russian city of Ufa in July.
Last month, Katyrin emphasized that Russia would concentrate its energy on the launch of the BRICS New Development Bank (NDB) in an effort to generate greater cooperation among the five emerging markets.
"The main priority for Russia will definitely be the launch of the BRICS bank. We will do our best to facilitate this process," Katyrin told RIA Novosti in an interview last month.
The bank will finance infrastructure projects in the BRICS countries and across other developing countries, and is expected to start functioning by the end of 2015.
“We hope that the Bank’s head – an Indian citizen - will be approved before the Ufa meeting and the main organizational and personnel decisions will also be taken during our presidency in the second half of 2015,” said Katyrin.
In July 2014, BRICS members gathered for the 6th summit in Fortaleza, Brazil, where they signed an agreement to forge ahead with the $100 billion NDB, which will also possess a reserve currency pool worth over another $100 billion.
“BRICS Bank will be one of the major multilateral development finance institutions in the world,” Russian President Vladimir Putin predicted at the time of the signing.
Indeed, judging by the proportion of the planet that now falls under the BRICS fold, the economic alliance seems destined to be a powerful force on the global stage.
BRICS represents 42 percent of the world’s population and about 20 percent of the world’s economy based on GDP (30 percent of the world’s GDP based on PPP, a more accurate reading of the real economy). Total trade between the countries stands at around $6.14 trillion, or nearly 17 percent of the world’s total.
According to Russian experts, economic turnover within the BRICS in the last five years has doubled. And, despite the crisis, any serious depreciation is not expected: The growth rate is anticipated to be 5-10 per cent per year.
The creation of the NDB will not be the only major project on the agenda during Russia’s one-year BRICS presidency. Katyrin says there are some 40 projects set for consideration by the five-member group, the most important at present being “in the field of infrastructure."
Challenging US-dominated institutions
Analysts predict the introduction of the NDB could have an effect of lessening the dominance of the US dollar in global markets, as well as inside dollar-backed institutions such as the International Monetary Fund (IMF) and the World Bank.
While Katyrin was optimistic that the pool of reserve currencies will “strengthen the position of the ruble,” he was realistic about the chances of any other foreign currency supplanting the US dollar as the global reserve currency anytime soon.
"It is not enough to declare that, for example, the yuan tomorrow will be a certain currency,” he said. “It will be a purely promotional, populist measure. We must make sure that any entrepreneur wanted to have the yuan in its turnover.”
“Until that happens, talk about convertibility of the yuan, or ruble would be inappropriate, the world will not treat (other currencies) like the dollar.”
Tool to foster security
Russian President Vladimir Putin reminded on Wednesday the importance of BRICS in helping to resolve global security issues.
Speaking about the “tragic lessons of the past,” Putin said BRICS “consistently advocated” on behalf of peaceful settlements in international conflicts and “condemned any attempts on the use of force and interference in the internal affairs of sovereign states.”
The most effective use of the five-nation economic bloc would be to “improve security and stability in the world.”
“That will be the focus during Russia’s presidency in BRICS,” the Russian leader emphasized.
Russia to be first BRICS country to ratify $100bn currency pool - envoy.
RT.com April 03, 2015 16:13
Russia aims to become the first country in the BRICS group of leading emerging economies to ratify an agreement on the foreign currency reserve pool, according to Russian Foreign Ministry Ambassador-at-Large Vadim Lukov.
"An agreement will be ratified soon on establishing a pool of foreign currency reserves. Russia will most likely be the first country to do this," Lukov said on Friday.
South Africa will contribute $5 billion, Russia, India and Brazil will allocate $18 billion each while China will provide the remaining funds, according to the envoy.
The goal of the pool is so that BRICS member states could urgently replenish their liquidity from it in different proportions to resolve problems with their balance of payments.
Meanwhile, Moscow is sure that new members will eventually join the New Development Bank (NBD), as the group wants to avoid it being called the ‘Bank of BRICS’.
In July, BRICS members signed an agreement in Brazil to forge ahead with the $100 billion NDB, which would also possess a reserve currency pool worth over another $100 billion.
BRICS Rating Agency
Experts from BRICS countries are also discussing the creation of a new independent rating agency the Russian envoy said, adding that China’s rating agency Dagong was currently in talks with Russia on the issue. The new Universal Credit Rating Group (UCRG) is to rival the so-called ‘Big Three’ that currently dominate the industry. The creation of an alternative agency was raised after Standard & Poor's, Moody's, and Fitch Group downgraded their rating regarding Russia’s creditworthiness following the Western anti-Russia sanctions.
“After the recent cases with Big Three rating agencies issuing politicized and biased assessments of the state and development prospects of Russian economy, this issue is of particular relevance,” Vadim Lukov told journalists, adding that Russia is not the first country to suffer from “rating aggression and rating dumping.”
The BRICS grouping of emerging market economies will meet for summit twice this year; on July 8-9 in Ufa, and either on November 15 or 16 on the sidelines of the G20 summit in Antalya. Some 120 events will be held in 16 cities within the program of Russia’s BRICS presidency program. Nineteen meetings will be held at the ministerial level.
Russia took over the presidency of the BRICS group from Brazil on Wednesday. President of the Russian Chamber of Commerce Sergey Katyrin became the BRICS Business Council head.
The BRICS group of prominent emerging economies was established in 2010, when South Africa joined Brazil, Russia, India and China in what was previously known as BRIC. The BRICS countries make up about 40 percent of the world's population and command a combined economy of about $16 trillion.
Zormovich: Russia thinks it can win by brute force and that it can enslave other countries. It can only enslave weak Russians who are scares to fight for their own freedom in their country. All ture Slavic people will gladly kill all Russians. Stay being a slave.
Apr 7, 2022 14:36:30 GMT -5
Zormovich: You hate ukranians for no reason other than wanting Russians to rule them and power. Cannot wait for your mixed Mongolian blood to sstarve soon. Enjoy your corruption and cheap Chinese food.
Apr 7, 2022 14:38:18 GMT -5
SlavsAgainstNaziRussians: This Tsar talking about serfdom when russian people starve and are killed by their own government. hahahah Russians are slaves living in fear everyday 🤣
Apr 7, 2022 18:12:29 GMT -5
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Apr 8, 2022 13:02:44 GMT -5
TsarSamuil: Considering how EU destroyed east european industry after the cold war, you think ukraine will get some marshal plan when eu has screwed over everyone so far? I mean, you are probably braindead americans who know nothing about anything..
Apr 9, 2022 19:18:34 GMT -5
Chorny-Vor: Zormovich, my Russian ass and your traitor tongue could become good friends.
Apr 12, 2022 13:49:08 GMT -5
Igor Malinovski: 70 days, and they're still fighting for Mariupol.
May 4, 2022 13:18:31 GMT -5
TsarSamuil: If it wasn't for Russian civilians, they could have carpet-bombed the area, turned it into a parking lot, in general there has been very small scale mass bombings, far below what they are capable of..
May 16, 2022 23:13:49 GMT -5
Lupul Dacic: Tanks seem to be quite outdated. They are too easy targets for drones and javelins.
May 25, 2022 6:08:38 GMT -5
Lupul Dacic: On the other hand, I know a shit about that.
May 28, 2022 4:40:48 GMT -5
구경꾼: Well by the looks of it, I believe that Ukraine will inevitably win the war. No way that the Russkies are going to get this far.
Jun 15, 2022 13:20:10 GMT -5
구경꾼: It is quite pathetic to support Russia unconditionally.
Jun 15, 2022 13:39:03 GMT -5
구경꾼: All their supporters rely on is their own echo chambers of misinformation.
Jun 15, 2022 13:39:32 GMT -5
구경꾼: Antagonisation of the West will only bring you down.
Jun 17, 2022 0:59:44 GMT -5
Boro: This war is a tragedy, and "the West" contributed a lot to the escalation.
Jun 19, 2022 1:18:23 GMT -5
Boro: Tsar, what's up?
Jun 25, 2022 17:41:13 GMT -5
TsarSamuil: hello, sorri, been busy, will be free whole july, will update posts fer sure then, or before then
Jun 27, 2022 10:16:49 GMT -5
TsarSamuil: seems like Russia is crushing the ukrainian twitter warriors
Jun 27, 2022 10:17:22 GMT -5
Boro: Don't be sorry. Life has priority. Take Care.
Jun 28, 2022 15:35:39 GMT -5