development banks in what currency. Re: BRICS?

I don’t think it makes any difference. Currencies are the largest market in the world. Banks and other businesses can use spot, futures, forwards and derivatives to do business in any currency they want at very low cost. If BRICS want to waste their taxpayers money on setting up a duplicative system they can probably do so, but it would probably be much less efficient and more expensive. Economic effects would be near zero. I think it would be a good idea to get this junk out of the US$ to try to clarify thinking in the USA, focus on the USA.

The World Bank is not important, just a liberal UN offshoot spending only a few billion $ of mostly taxpayer money to fight poverty and climate change with little impact so far. Lots of rich people with guilt complex may want to sink more money into it, especially if it is taxpayer money and not theirs.

Hopefully this will be China taxpayer money, India rich people money, Russian mafia money, etc. Not USA middle class money.

Bob wrote:
> Not sure what to make of this BRICS thing.
>
> >
>
> The BRICS Need to Think Harder About How to Overthrow Dollar Dominance > -about.html>
>
>
> The Council on Foreign Relations is snickering at them.
>
> Posted at the CFR: >
> Hurling BRICS at the World Bank and the $
> by Benn Steil and Dinah Walker
>
> > 1600/brics-bank-world-bank.jpg> Description:
> https://financialrisk.files.wordpress.com/2014/07/21973-s1.jpg > 600/brics-bank-world-bank.jpg
>
> Brazil, Russia, India, China, and South Africa (the “BRICS”) made a splash > last week with the official launch of their new development bank. The > backers made no secret of their intention to challenge the way things are > done in the established international financial and monetary architecture. >
> >
> The irony is that India and China are the biggest beneficiaries of the > current development bank architecture. They are the World Bank’s largest > borrowers. And Brazil is number 9. As shown in the graphic above, these > three nations have $66bn in World Bank loans outstanding, 32% more than the > new BRICS bank’s entire initial subscribed capital of $50bn. So it would > appear that for the foreseeable future the World Bank will remain a > considerably more important source of development financing for the BRICS > than their own development bank.
>
> >
> At the bank’s launch, Russian president Vladimir Putin took a shot at the > prevailing global monetary architecture, contrasting it with the BRICS’ > vision. “The international monetary system . depends a lot on the U.S. > dollar, or, to be precise, on the monetary and financial policy of the U.S. > authorities. The BRICS countries want to change this.” However, the entire > paid-in capital stock of the new BRICS bank will be in U.S. dollars. Just > 10 percent of the World Bank’s paid-in capital was contributed in U.S. > dollars; the rest was contributed in member countries’ national currencies. > So whose currency regime is more dependent on the dollar?
>
> >
>

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