New Development Bank
Part of: Prelims and GS-II International Relations
Context India has welcomed Egypt as the fourth new member of BRICS New Development Bank that was established by the BRICS countries six years ago.
- Bangladesh, UAE, and Uruguay joined in September 2021.
- Membership expansion enables New Development Bank to position itself as a premier development institution for emerging economies.
- The New Development Bank aims to mobilize resources for development projects in BRICS, emerging economies, and developing countries.
- The bank is headquartered in Shanghai, China.
Components of financial architecture of the BRICS:
- New Development Bank: NDB’s key areas of operation are clean energy, transport infrastructure, irrigation, sustainable urban development and economic cooperation among the member countries.
- Contingent Reserve Arrangement: It aims to provide short-term liquidity support to the members through currency swaps to help mitigate the BOP crisis situation and further strengthen financial stability.