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Russia ready with proposal for bank to replace IMF and dollar at BRICS summit

 Brazil's President Dilma Rousseff and Russia's Vladimir Putin
Brazil's President Dilma Rousseff and Russia's Vladimir Putin
Photo by Handout/Getty Images

On July 14, nations from Brazil, Russia, India, China, and South Africa met in Fortaleza, Brazil for the 6th annual BRICS summit. And leading the discussion and agenda this year, is a proposal by Russian President Vladimir Putin to finalize, and begin implementation of the long sought after BRICS bank, which would go head to head with the IMF and World Bank, and allow countries associated within the BRICS sphere of nations to use the institution for sovereign growth outside the dollar.

Since last year, Brazil's President Dilma Rousseff and Russia's Vladimir Putin have been in deep discussions over the creation of a bank separate from Western control and domination. And for years, the U.S. led IMF has been the lender of last resort for insolvent countries, with their assistance coming at a very steep price, and usually with stipulations that affect their sovereign rule and economic futures.

However, the foundations of a newly proposed international bank by the BRICS nations are actually intended to be in opposition to standard IMF practices, and would focus on internal growth and free trade versus economic reforms. And it is this current banking model by the IMF that the leaders of the BRICS nations believe has been a stumbling block to economic growth, and a hindrance tied primarily to the 40 year old petro-dollar system.

Brazil's President Dilma Rousseff and Russia's Vladimir Putin have discussed the creation of a development bank to promote growth in Brazil, India, China, Russia and South Africa.

Rousseff received Putin in the presidential palace in Brasilia on Monday, a day before leaders of the five emerging BRICS nations meet in the northeastern city of Fortaleza.

Rousseff told reporters the bank would top the summit's agenda, adding she hoped the event would produce an agreement on the proposed institution.

She said the five countries "are among the largest in the world and cannot content themselves in the middle of the 21st century with any kind of dependency." - Associated Press

The major importance of a separate, yet equally powerful bank that contrasts what is currently available on the international scene is that the BRICS need similar, yet self contained infrastructure to be able to move away from dollar hegemony, and begin implementation of their plan for a Asian and Eurasian Trade Zone complex. And since Russia and China have already laid the groundwork for oil and natural gas to be sold in currencies other than the dollar, the remaining steps needed towards fully realizing a new global trade system is to have a functioning institution that recognizes all currencies, even gold and silver, for use in international settlement that does not have to go through the SWIFT and BIS complexes first.

China, Russia, and Brazil have already been outspoken of a future that features a de-Americanized and de-dollarized financial order. And with trade and currency swap lines already in place in 23 major countries which include both Germany and Britain, the creation of a new banking system that can facilitate all the functions that the current Western system does, but without the fear of economic, military, or political conditions attached to sovereign loans as is customary with the IMF, is ready for final acceptance as the BRICS move forward in their quest for a replacement of the old financial order.