Recently, India has welcomed Egypt as the fourth new member of BRICS New Development Bank that was established by the BRICS countries six years ago.
Context
Recently, India has welcomed Egypt as the fourth new member of BRICS New Development Bank that was established by the BRICS countries six years ago.
Key-highlights
- Bangladesh, UAE, and Uruguay joined in September 2021.
- Inclusion of Egypt has further expanded the global outreach of BRICS Bank.
- Membership expansion enables New Development Bank to position itself as a premier development institution for emerging economies.
Components of financial architecture of the BRICS
- The New Development Bank aims to mobilize resources for development projects in BRICS, emerging economies, and developing countries.
- Key-areas: NDB’s key areas of operation are clean energy, transport infrastructure, irrigation, sustainable urban development and economic cooperation among the member countries.
- Contingent Reserve Arrangement: It aims to provide short-term liquidity support to the members through currency swaps to help mitigate the BOP crisis situation and further strengthen financial stability.
About New Development Bank (NDB)
- NDB is a multilateral development bank.
- It was jointly founded by the BRICS countries in 2014, at the 6th BRICS Summit in Fortaleza, Brazil. But it was formally opened in July 2015.
- The bank was set to support the infrastructure and sustainable development efforts in BRICS grouping and other underserved & emerging economies for a faster development through cutting-edge technology and innovation.
- It’s headquarter is in Shanghai, China.
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