India to head 100 billion dollar BRICS Development Bank to be set up at Shanghai in China.
The capital for the bank will be split equally among the five participating countries. The bank will have its headquarters at Shanghai in China. Brazil's President, Dilma Rousseff announced the creation of the bank at a Brics summit meeting in Fortaleza, Brazil yesterday. At first, the bank will start off with 50 billion dollars in initial capital.
The emergency reserve fund which was announced as a Contingency Reserve Arrangement, will also have 100 billion dollars and will help developing nations avoid short term liquidity pressures, promote further Brics cooperation, strengthen the global financial safety net and complement existing international arrangements.