No US dollar transactions in Brics deals

by Byo24News

2011 April 14 09:08:37 | 428 Views

Tags

Brics, Deals,

Ingabe ikuphatheleni i-MDC, njalo kusizani ukuyivotela? | 2013 May 13 17:03:55 | 3064 views
Ikuphatheleni iMDC, kusiza ngani ukuyivotela? | 2013 May 08 19:28:47 | 2855 views
MDC-T on course | 2013 March 27 14:05:12 | 6762 views
People will vote for a party with sustainable economic programmes | 2013 March 04 02:36:52 | 7577 views
Introducing: Election (2013) campaign articles | 2013 March 02 11:08:41 | 6115 views

Most Viewed

Prostitute dies during love making, 'resurrects' in coffin | 2013 March 23 10:13:12 | 85702 views
Woman sends photo of naked President Mugabe via Whatsapp | 2013 January 10 15:04:10 | 46821 views
Zim woman who had sex with boyfriend as son watched named | 2013 January 31 09:05:43 | 45151 views
Man marries mother-in-law after his wife died | 2013 January 16 11:05:42 | 30770 views

Sanya, China - The development banks of the five Brics nations agreed in principle on Thursday to establish mutual credit lines denominated in their local currencies, not in dollars.

The framework pact was signed by the heads of the banks on the sidelines of a meeting of the leaders of Brazil, Russia, India, China and South Africa on this southern Chinese island.

Vnesheconom Bank, Russia's state development bank, said the purpose was to boost trade and economic relations among the five Brics members.

"The agreement is aimed at strengthening financial cooperation between partner banks, the support of financial institutions and companies seeking to enter Brics markets," the bank said in a statement.

Brazil's BNDES,Export-Import Bank of India, China Development Bank and the Development Bank of South Africa also signed the framework accord.

Setting up local-currency credit lines may prove to be of more symbolic than practical importance, depending on how easy they are to access and the financing terms. Export-import firms are used to trading in dollars, the dominant currency in global commerce.

The Brics, however, are worried about the long-term fate of the dollar because of America's large trade and budget deficits and begrudge the privileges that come with being the leading reserve currency.

To that end, the leaders called in a communique for a broad-based international reserve currency system "providing stability and certainty".

Source: Reuters