Bank will be headquartered in
The leaders of the BRICS countries have signed a "Fortaleza Declaration", creating a new
Rousseff said: "I believe the BRICs have made great strides towards creating institutions that will benefit emerging and developing countries.
"The bank will contribute resources to guarantee investments in infrastructure."
Initial capital for the bank will be
Rousseff added that the currency reserve would help safeguard emerging economies from volatility caused by expansionary monetary policy of
- 'Falling short'
The two biggest existing multilateral economic entities, the IMF and the
Developing countries have long complained the IMF and the
According to Marcos Troyjo, co-director of
"They have certainly not been brought up to date to tackle the 21st-century development challenges of a world where dynamic growth for the global economy comes mostly from emerging markets."
The creation of the bank may go some way to addressing criticisms leveled at the BRICS grouping.
- 'Shared goals'
Since the group began meeting formally in 2006, many have argued that the countries have little in common.
JoÃo Castro Neves, senior
Castro Neves told AA: "The great challenge for this group is to show the world a reason to be together, given that the common dominator amongst the five members is thin, in terms of specific interests.
"But the few areas where there is overlap among the five are on economic structure, institutional financial structure."
Castro Neves said that, as well as providing practically useful resources for investment and development, the new BRICS bank represents a way of showing the
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