Kamas explained: “There is also a BRICS currency reserve…basically a parallel IMF…not in the public domain, but it exists. It doesn’t have an office, but it serves the needs of BRICS countries in times of crisis. I’m not ready.”
This reserve, still largely unknown to the public, suggests that BRICS is not only building the economic and financial resilience of its members, but also pursuing a more independent future, one that is not dependent on Western-led finance. It clearly shows that they are preparing for the future. institution.
Kamath’s reflections also tie into the broader theme of the power of collaboration. He pointed out that another New Development Bank (NDB) created by BRICS in 2015 proved the strength of unity. NDB grew despite initial skepticism about the bank’s credibility, especially since the founding members had different credit ratings.
Kamath said NDB’s ability to secure an AA+ rating, just 10 to 15 basis points higher than the World Bank, proves that when southern countries come together, they can achieve results that were thought impossible alone.
Through these efforts, Mr. Kamath emphasized that “great power is created when we come together.” The BRICS foreign exchange reserves, together with the NDB, emphasize this idea. These efforts reflect broader changes in global finance, where emerging economies are no longer at the mercy of traditional Western financial systems. Instead, they are building their own systems of support and cooperation, asserting influence, and preparing to play a key role in the new world order.
Also read: Growth forecasts for 2025: Mixed signals for the Indian economy
(Editor: Shoma Bhattacharjee)
