Update | BRICS group of nations sets up development bank to rival IMF, World Bank
Emerging powers agree details of US$50 billion lender to rival the IMF
Leaders of the five BRICS nations agreed on the structure of a US$50 billion development bank by granting China its headquarters and India its first rotating presidency.
Brazil, Russia and South Africa were also granted posts or units in the new bank.
The leaders of Brazil, Russia, India, China and South Africa also formalised the creation of a US$100 billion currency exchange reserve, which member states can tap in case of balance of payment crises, according to a statement issued at a summit in Fortaleza, Brazil. Both initiatives, which require legislative approval, are designed to provide an alternative to financing from the International Monetary Fund and the World Bank, where BRICS countries have been seeking more say.
"The BRICS are gaining political weight and demonstrating their role in the international arena," Brazilian President Dilma Rousseff said after a signing ceremony.
Until the eve of the summit, India and South Africa had vied with China to host the headquarters of the bank, dubbed the New Development Bank.
The administration of Indian Prime Minister Narendra Modi gave in after it was reminded that his country's previous administration had agreed to Shanghai as the bank's headquarters, according to an Indian official.