2009 ... Towards a new global financial order
BRICS is the acronym for an association of five major emerging national economies: Brazil, Russia, India, China and South Africa. The BRICS members are all developing or newly industrialised countries, but they are distinguished by their large, fast-growing economies and significant influence on regional and global affairs; all five are G-20 members. As of 2014, the BRICS nations represented 18 percent of the world economy.
We are working together to move forward on one of the most difficult problems in global governance: IMF reform.
We remain disappointed and seriously concerned with the current non-implementation of the 2010 IMF reforms, which negatively impacts on the IMF's legitimacy, credibility and effectiveness.
The creation of the new BRICS bank is a reaction to what member countries consider unfair lending policies by the Western world through the International Monetary Fund (IMF) and the World Bank. The success of BRICS may aid in reducing the influence of the United States and other Western institutions among many parts of the world.
With respect to the financial crisis, the BRICs are pursuing a four-pronged approach: decisive regulation of global financial markets; an orderly move away from the existing global monetary system based solely on the dollar; reorganization of the IMF, including a more important role for Special Drawing Rights as a transitional instrument in international reserve facilities; and the longer-term creation of a new multipolar monetary system based on a basket of currencies.
Special drawing rights (XDR or SDR) are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF). Their value is based on a basket of key international currencies reviewed by IMF every five years. ... the XDR basket consists of the following four currencies: U.S. dollars ($), euro (€), pounds sterling (£), Japanese yen (¥).
China, eager to make the yuan go global, has placed SDRs in the spotlight.
Leaders of Asia-Pacific economies agreed Tuesday to begin work toward possible adoption of a Chinese-backed free-trade pact, giving Beijing a victory in its push for a bigger role in managing global commerce.
China's bid to play a bigger role in the management of the global financial system has been in train since it helped draw up the rules that created the International Monetary Fund in 1944.
Renminbi joins U.S. dollar, euro, yen, and British pound in SDR basket
"The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models," said Chinese Finance Minister Lou Jiwei at the opening ceremony of the bank.
Today, China is leveraging its rise as an economic power, and as the most important incremental market for hydrocarbon exporters in the Persian Gulf and the former Soviet Union to circumscribe dollar dominance in global energy — with potentially profound ramifications for America's strategic position.