BRICS to create new development bank

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BRICS to create new development bank

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The BRICS grouping of emerging powers has agreed on the creation of a development bank that will rival Western-backed institutions.

The announcement came as the leaders of Brazil, Russia, India, China and South Africa gathered for a summit in Durban.

Many of the details, such as where it will be located, are yet to be decided, but if it gets off the ground it could send a loud message to the US and Europe that the global power balance is shifting.

Each country is expected to invest around 10 billion euros.

Also at the summit Brazil and China signed an agreement to trade vastly more in their own currencies, lessening their dependence on the US dollar and the euro.

The emerging BRICS nations already account for 25 percent of global GDP and 40 percent of the world’s population.