After our Call on USD – Brics Banks is being formed.
July 15, 2014
After our Call on USD – Brics
Banks is being formed.
On 13th
July we wrote our most bold call on USD. We had given our target of Rs.35 to
Rs.40. Just see how the world is reacting to the USD.
Anti-Dollar Alliance
Prepares Launch Of BRICS Bank
Brics efforts at the time, to create a structure that would serve as
an alternative to the IMF and the World Bank (which are dominated by the U.S.
and the EU), appear to be nearing completion. As AP reports,
Brazil's President Dilma Rousseff and Russia's Vladimir Putin have discussed
the creation of a development bank to promote growth across the BRICS and hope
to produce an agreement on the proposed institution at this week's BRICS
Summit.
Brazil's
President Dilma Rousseff and Russia's Vladimir Putin have discussed the
creation of a development bank to promote growth in Brazil, India, China,
Russia and South Africa.
Rousseff received Putin in
the presidential palace in Brasilia on Monday, a day before leaders of the five
emerging BRICS nations meet in the northeastern city of Fortaleza.
Rousseff
told reporters the bank would top the summit's agenda, adding she
hoped the event would produce an agreement on the proposed institution.
She said
the five countries "are among the largest in the world and cannot content
themselves in the middle of the 21st century with any kind of dependency."
Brazil and Russia also
signed bilateral accords on air defense, gas and education
The leaders who will be present (not so many big fans of the US
there)...
They seem serious:
- *BRICS
DEVELOPMENT BANK KEY TO FOSTER GROWTH IN GROUP: BORGES
- *BRICS BANK AT
1ST TO FINANCE EXCLUSIVELY INFRASTRUCTURE:BORGES
- *RUSSIA'S PUTIN
SAYS COOPERATION WITH CHINA IS GROWING
- *PUTIN SAYS
RUSSIA TO PROMOTE CURRENCY SWAP WITH CHINA: XINHUA
As we concluded previously, as RBTH reports, it seems the BRICS are not
slowing down efforts to create their own IMF-alternative...
The BRICS
countries (Brazil, Russia, India, China and South Africa) have made significant
progress in setting up structures that would serve as an alternative to the
International Monetary Fund and the World Bank, which are dominated by the U.S.
and the EU. A currency
reserve pool, as a replacement for the IMF, and a BRICS development bank, as a
replacement for the World Bank, will begin operating as soon as in 2015,
Russian Ambassador at Large Vadim Lukov has said.
Brazil has
already drafted a charter for the BRICS Development Bank, while Russia is drawing up
intergovernmental agreements on setting the bank up, he added.
In addition, the BRICS
countries have already agreed on the amount of authorized capital for the new
institutions: $100 billion each. "Talks are under way on the distribution
of the initial capital of $50 billion between the partners and on the location
for the headquarters of the bank. Each of the BRICS countries has expressed a
considerable interest in having the headquarters on its territory," Lukov
said.
It is
expected that contributions to the currency reserve pool will be as follows:
China, $41 billion; Brazil, India, and Russia, $18 billion each; and South
Africa, $5 billion. The amount of the contributions reflects the size of the
countries' economies.
...
The creation of the BRICS
Development Bank has a political significance too, since it allows its member
states to promote their interests abroad. "It is a political move that can
highlight the strengthening positions of countries whose opinion is frequently
ignored by their developed American and European colleagues.
The stronger this union and its positions on the world arena are, the easier it
will be for its members to protect their own interests," points out
Natalya Samoilova, head of research at the investment company Golden
Hills-Kapital AM.
Perhaps the following sums it all up perfectly...
Economists
warn the IMF's legitimacy is at stake, and they say U.S. standing abroad is
being eroded.
"Eroded" indeed...
* * *
If the current trend
continues, soon the dollar will be abandoned by most of the significant global
economies and it will be kicked out of the global trade finance. Washington's
bullying will make even former American allies choose the anti-dollar alliance
instead of the existing dollar-based monetary system. The point of no return for the dollar
may be much closer than it is generally thought. In fact, the greenback may
have already past its point of no return on its way to irrelevance.
I
stick to my call of USD falling to my given levels. I do not care whether it
happens due to BRICS or some other reasons.
Just
remember, I am the first to give you the target. Most experts will follow me.
Just
follow my advice and invest in India. Indvest in Indian Equity and bless me
for life.
What
Next?
Are
you ready for better thing in your life? If yes, do write to me.
Have
a great week ahead.
Follow me on Twitter @hiteshmparikh Or
on Whatsapp - +91-9869425399.Live
With Passion…Invest With Passion.
Hitesh
Parikh.
Comments
Post a Comment