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Gordhan: BRICS bank could pool finances
February 28, 2013, 5:01 am

BRICS members are expected to announce the launching of a development bank [AP]

BRICS members are expected to announce the launching of a development bank in Durban at the end of March [AP]

With less than a month before the South African city of Durban hosts the Fifth Annual BRICS Summit, finance minister Pravin Gordhan has outlined the importance of the proposed development bank.

“The possible establishment of a BRICS-led bank is intended to mobilise domestic savings and co-fund infrastructure in developing regions,” the minister said in his budget speech Wednesday.

At a time when many countries were succumbing to the global financial crisis, with some resorting to currency manipulation, Gordhan highlighted the importance of the “pooling of members’ foreign exchange reserves with the view of using them to support each other at times of balance of payments or currency crisis”.

BRICS countries currently hold reserves totaling $4.5 trillion.

In an exclusive op-ed to The BRICS POST last week, South African minister of international relations and cooperation Maite Nkoana-Mashabane said that one purpose of this bank would be to supplement the existing efforts of multilateral and regional financial institutions for global growth and development.

“Such a new development bank could complement existing institutions and address gaps and challenges in critical sectors. President Zuma has already articulated South Africa’s strong support for this initiative and other African leaders have also indicated their keen interest.”