Outgoing World Bank President Robert Zoellick has stated that the World Bank would support a BRICS bank. It appears that using the SWIFT system as a weapon against Iran has MAJORLY backfired. The result will see the dollar lose its reserve currency status much sooner than it otherwise might have.
Robert Zoellick said the World Bank would support a Brics bank, an idea formally proposed at a summit in New Delhi last week. The World Bank has previously backed the creation of the Islamic Development Bank and the Opec Fund to build financing and analytical capabilities.
If Brics nations “decide they want another financing vehicle – fine. Let’s figure out how to work with it … I’m enough of an economist that I’m not a monopolist,” Mr Zoellick told The Financial Times.
“India wants the money. China wants to be seen as a good partner and may want to internationalise the renminbi … Brazil wants to be associated with the concept and maybe it can connect [its own] Development Bank.”
The idea was discussed at the meeting between Manmohan Singh, the Indian prime minister, and leaders Hu Jintao of China, Dilma Rousseff of Brazil, Dmitry Medvedev of Russia and Jacob Zuma of South Africa.
Mr Zoellick said the desire by India, China, Brazil and Russia for a new financing vehicle was a reminder of what could happen if the World Bank reduced its engagement with middle-income countries in preference for poorer nations.