World Bank Competition: BRICS Nations Create New Bank and $100 Billion Reserve

According to the Bangkok Post, the BRICS nation’s leaders introduced their international financial institutions made to rival the World Bank and the International Monetary Fund. 

The New Development Bank and $100 billion Contingent Reserve Arrangement are equally backed by each nation—Brazil, Russia, India, China, and South Africa—regardless of size, population, or GDP. Together these countries represent 40 percent of the world population and a fifth of the global economy.

The Thailand company lawyers at Chaninat & Leeds have decades of experience in business litigation to help companies throughout Thailand achieve a variety of business obligations and needs.  

The bank, which will be headquartered in Shanghai, will help emerging and developing nations mobilize resources for infrastructure and sustainable development projects, according to the BRICS statement.

The need for these new international financial institutions rose from a need to “increase the representations and voice of developing countries," said Chinese President Xi Jinping, reports the Bangkok Post.

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Rise of the Yuan: Bank of Thailand Encourages Trade in Chinese Currency

China is Thailand’s number one trading partner, and now Thai businesses are being encouraged to use the yuan in trade and investment, according to The Nation. 

The Bank of Thailand recently expressed public support of using the Chinese currency at a bank seminar.

The Nation cited Chantavarn Sucharitakul, BOT assistant governor for the Financial Markets Operations Group, as saying “the BOT believed that the use of the yuan would provide more options in term of payments when doing business with China.”

Several of the benefits reported by The Nation of businesses trading with China in yuan include better exchange rates and lower prices because of lower risk, more opportunity for trade with small and medium enterprise in China, and faster payments from Chinese importers. 

The Thai company attorneys at Chaninat and Leeds are experienced professionals assisting with company registration and business litigation in Thailand.

Thailand’s trade with China increased from $57 billion USD in 2011 to $65 billion in 2013, and the international influence of the yuan is increasing as well according to a May SWIFT report.

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