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New Development Bank

  • IASbaba
  • December 30, 2021
  • 0
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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.

Key takeaways 

  • 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.

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