Wednesday, October 28, 2015

BRICSPOST: Yuan to Replace US Dollar in new BRICS Bank

In this new article in the BRICSPOST, Indian Prime Minister Modi talks about the new BRICS Bank. He touches on a variety of topics including the fact that the US dollar will be replaced in the BRICS Bank with the Chinese yuan. Modi also repeats the call for changes to global governance at the global institutions. Below are quotes from the article.

"Indian Prime Minister Narendra Modi on Friday said the New Development Bank launched by the BRICS will have Africa as a “major area of focus”.
In a written interview with African journalists at the editors forum of the third India-Africa Forum Summit (IAFS) in New Delhi, Modi said the New Development Bank was a significant initiative that can have a profound impact on the global financial order."
. . . . . 
"The BRICS New Development Bank will name its first investment in April next year and the first loan will be issued in Chinese yuan not dollar, top officials have confirmed.
The bank has an initial authorized capital of $100 billion.
Its initial subscribed capital of $50 billion will be equally shared among the founding members.
The paid-in reserves are planned to be denominated in each country’s currency. The Chinese renmimbi is also expected to replace the dollar at the BRICS Bank, especially for projects in Asia."
. . . . . 
"On Friday, Indian Prime Minister Modi also asked 54 African nations to join India in demanding an overhaul of the United Nations and other global institutions to make them more “democratic, inclusive andrepresentative”. Modi said that “the world is undergoing political, economic and technological transition on a scale rarely seen in recent history” and facing new challenges such as terrorism and climate change, which did not exist when the UN was founded 70 years ago. He warned that the UN and other global bodies run the risk of losing relevance if they do not adapt."

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