Business
The Way Forward for the BRICS New Development Bank
For now, using BRICS currencies on some level would be a powerful symbolical gesture, but for most transactions it would come at the cost of still having to convert those funds to US Dollars or IMF SDRs. If a BRICS currency does become a recognised reserve currency, the NDB should certainly use it. But for now, sticking with a recognised global standard is the safer bet.
Conclusion
Much is unknown about the BRICS Development Bank, but few can doubt the potential on offer. Concentrating the substantial resources of the five super-powers-in-waiting offers an alternative source of development funding to a global economy still facing substantial challenges. But the bank matters as much to the BRICS grouping. It offers the chance to transform the powerful symbolism of the group into a source of action, by empowering the BRICS with the real capacity to apply their vision.
Copyright allAfrica 2014
