BRICS nations sign pacts to promote trade in local currency
- Mali hostage crisis ends as security forces gun down militants; 27 killed
- Sheena Bora case: Peter charged with murder, criminal conspiracy
- Nitish Kumar sworn in as Bihar Chief Minister; Lalu's sons in Cabinet
- UP keeps its distance from Bihar: Why Mulayam, Akhilesh didn't attend Nitish swearing-in
- Madras HC stays cancellation of Greenpeace India registration
In an initiative to promote trade in local currencies, the BRICS nations today signed two agreements to provide line of credit to business community and decided to examine the possibility of setting up a development bank on lines of multilateral lending agencies.
The agreements were signed by officials of five countries – Brazil, Russia, India, China and South Africa – at the fourth BRICS summit here.
"The agreements signed today by development banks of BRICS countries will boost trade by offering credit in our local currency," Prime Minister Manmohan Singh said in a media statement after the meeting.
The Master Agreement on Extending Credit Facility in Local Currency and the Multilateral Letter of Credit Confirmation Facility Agreement are being perceived as a step towards replacing the dollar as the main unit of trade between them.
Such intra-BRICS initiatives, according to officials, will not only contribute to enhanced trade and investments among the nations but would also facilitate economic growth in difficult economic times.
As regards the initiative to set up a BRICS Development Bank on the lines of multilateral lending agency, Singh said the proposal would be examined by the finance ministers.
"A suggestion has been made to set up a BRICS development bank, we have directed our FM to examine the proposal and report back by next summit," Singh said.
The initiative to set up a BRICS Development Bank on the lines of the World Bank would allow the member countries to pool resources for infrastructure development and could also be used to lend during the difficult global environment.
- Modi can leverage foreign policy to repair his domestic image
- Muslims biggest losers from our reservation policy, one that Bhagwat rightly wants reviewed
- If Pak state really cared for its people, it would put national economy above all else
- Despite little coverage in India, the Argentinian presidential election is significant
- Uday lacks a strong, accessible monitoring mechanism critical for its success
- What Mr Mani Shankar Aiyar won’t say