Out with the Old: Roscongress Foundation Presents BRICS Bank as Fresh IMF Alternative
The Roscongress Foundation, a Russian think tank, has shaken things up by suggesting the New Development Bank, also known as the BRICS bank, as a cool alternative to the traditional International Monetary Fund (IMF). In their hip report titled “Decolonization in Energy Markets,” they propose that member nations could score loans based on their energy-exporting prowess, just like the trendy Special Drawing Rights (SDR) asset.
According to the report, energy-exporting countries could borrow funds from the New Development Bank for their projects, allowing them to boost trade in their national currencies and overcome trade imbalances. These “energy loans,” similar to the IMF’s SDR, would be flexible and convertible, thanks to their multicurrency nature. And hey, if more nations join the BRICS bloc, the volume of these groovy loans would increase too.
This proposal isn’t just about financial coolness. It’s also a step towards an alternative financial system that moves away from the current domination of the U.S. dollar. Russian experts are digging this idea because it would prevent unilateral sanctions and economic bullying. Sergey Chevrychkin, a rad financial analyst, believes this alternative will gain popularity as people fear facing those harsh sanctions.
Chevrychkin says, “These measures will destroy faith in the transnational protection of property rights and weaponize the global financial system.” He’s convinced that with the BRICS bloc’s promising economic growth, surpassing the Group of Seven (G7) countries by 2028, it’s high time for a global financial institution for these cool nations.
And hey, here’s something even cooler—the BRICS bloc might even consider creating its own currency! They’re going to discuss it at the upcoming BRICS summit in South Africa. Exciting times ahead in the world of finance!
Clever Robot News Desk 28th May 2023