NEW YORK, July 17 (RIA Novosti) – A new development bank from BRICS emerging economies has yet to be clearly defined and does not worry the US, State Department spokeswoman Jen Psaki said.
“Without knowing the [bank’s] objectives or the focus or the means of governance, it’s hard for us to speculate on that or worry about it at this particular moment,” Psaki told journalists in Washington late on Wednesday.
Envoys from Brazil, Russia, India, China, and South Africa (BRICS) announced two much-anticipated $100 billion finance bodies on July 15 as rivals to the Western-dominated World Bank and the International Monetary Fund.
“There are not a lot of details about the specific focus that this planned development bank would have. Many important details, including its governance and relationships with the established financial institutions aren’t clear yet.”
The BRICS emergency pool of currency will total $100 billion, with Russia’s contribution amounting to $18 billion, and provide a buffer in conditions of capital volatility, overcoming the lack of short-term liquidity and rapidly offsetting fiscal deficit triggered by economic turbulence.
The five BRICS states represent about one-third of the global population and a combined economy of some $13.6 trillion.