Samir N. Kapadia

Are BRICS Countries Bailing on the Dollar?

At the last BRICS summit held in March in New Delhi, development banks of the participating countries agreed on a proposal to extend credit in local currency for trade, project financing and infrastructure projects. So far, no clear mechanism on how they will extend local currency credit has been announced. Some financial gurus even dismiss the BRICS agreement as purely symbolic. Yet banks in London, New York, Tokyo and Singapore would be wise to take a second look at what now could be the most significant agreement in international finance since the euro. 2 Jun 2012

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