On Tuesday, BRICS leaders will hold their annual summit in Durban, the eastern city of South Africa. Leaders from Brazil, Russia, India, China and South Africa plan to approve the establishment of a new development bank at the summit. At that time, they will also discuss the establishment of foreign exchange reserves to resist the balance of payments and other currency crises.
MartynDavies, CEO of FrontierAdvisory in South Africa, said, "The deepest thinking of BRICS countries is basically to create a new Bretton Woods institution that is biased towards developing countries." He believes that global power has shifted from the traditional western world to emerging economies, and this shift in the West has caused many geopolitical concerns.
The total foreign exchange reserves of the BRICS countries reached 4.4 trillion US dollars, accounting for 43% of the world's population. These countries seek to gain influence in the global financial system that matches their growing economic strength. They have called on the Western-led World Bank and the International Monetary Fund to implement management reforms, and they are dissatisfied with the practice of selecting the presidents of these two organizations from the United States and Europe respectively.