BRICS are coordinating their policies on key international issues ever more closely, and are playing an active part in shaping a multi-polar world order and developing modern models for the world’s financial and trading systems. – Putin,The BRICS Post
Vladimir Putin assumed the annual Presidency of the BRICS last Wednesday and Shanghai will be the host city for the BRICS headquarters. The BRICS bank will formally be named the New Development Bank and it is anticipated that the other countries will be joining the BRICS bloc in the near future.
It has been my view that the BRICS bank has been been established as an alternative source of financing to the IMF, which is heavily controlled by the United States. I also think the BRICS banks will serve as a “flushing mechanism” through which China and Russia will redistribute a portion of their U.S. Treasury holdings. This would be a less conspicuous avenue for selling U.S. Ponzi paper than outright selling through traditional bond market mechanisms.