New Development Bank (Brics) Launches in Shanghai

The Brics group of emerging economies on Tuesday launched its New Development Bank (NDB) in Shanghai.

The bank is backed by Brazil, Russia, India, China and South Africa – collectively known as Brics countries.

The NDB will lend money to developing countries to help finance infrastructure projects.
The bank is seen as an alternative to the World Bank and the International Monetary Fund, although the group says it is not a rival.

“Our objective is not to challenge the existing system as it is but to improve and complement the system in our own way,” NDB President Kundapur Vaman Kamath said.

The Brics nations have criticised the World Bank and the IMF for not giving developing nations enough voting rights.

The banks is expected to issue its first loans early next year.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza