# BRICS bank, Reserve currency and GDP rankings.

**URL:** <https://boards.straightdope.com/t/brics-bank-reserve-currency-and-gdp-rankings/639191>\
**Category:** Factual Questions\
**Created:** [October 29, 2012, 5:10am UTC](https://boards.straightdope.com/t/brics-bank-reserve-currency-and-gdp-rankings/639191 "2012-10-29T05:10:10Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![truthSeeker2](https://avatars.discourse-cdn.com/v4/letter/t/7cd45c/32.png) [@truthSeeker2](https://boards.straightdope.com/u/truthSeeker2)\
**Post date:** [October 29, 2012, 5:10am UTC](https://boards.straightdope.com/t/brics-bank-reserve-currency-and-gdp-rankings/639191/1 "2012-10-29T05:10:10Z")

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Please throw some light on BRICS bank, how likely is it to be formed?  
Would it mean Chinese Yuan getting promoted as a reserve currency since China is cash rich and most other countries will take loans from the BRICS bank for their development projects?  
Would then, the nominal GDP ranking of a country depend on the value of its currency wrt the US dollar as well as Yuan?

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**Author:** ![Ludovic](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@Ludovic](https://boards.straightdope.com/u/Ludovic)\
**Post date:** [October 29, 2012, 2:13pm UTC](https://boards.straightdope.com/t/brics-bank-reserve-currency-and-gdp-rankings/639191/2 "2012-10-29T14:13:41Z")

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I don’t understand your first sentence. Do you mean “what is the possibility of a bank being formed that explicitly encompasses the BRICS countries”? And do you mean a private, or intergovernmental bank?

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**Author:** ![truthSeeker2](https://avatars.discourse-cdn.com/v4/letter/t/7cd45c/32.png) [@truthSeeker2](https://boards.straightdope.com/u/truthSeeker2)\
**Post date:** [October 29, 2012, 3:54pm UTC](https://boards.straightdope.com/t/brics-bank-reserve-currency-and-gdp-rankings/639191/3 "2012-10-29T15:54:11Z")

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> [@Ludovic](#):
>
> I don’t understand your first sentence. Do you mean “what is the possibility of a bank being formed that explicitly encompasses the BRICS countries”? And do you mean a private, or intergovernmental bank?

I mean a intergovernmental bank(managed by BRICS nations) where all developing countries can take loans and all countries(including the developed one) have a chance to invest.  
I was listening to [this](http://www.youtube.com/watch?v=lq8dKZO22A4)helpful video in this regard.

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**Author:** ![Grey](https://avatars.discourse-cdn.com/v4/letter/g/b782af/32.png) [@Grey](https://boards.straightdope.com/u/Grey)\
**Post date:** [October 29, 2012, 4:04pm UTC](https://boards.straightdope.com/t/brics-bank-reserve-currency-and-gdp-rankings/639191/4 "2012-10-29T16:04:10Z")

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Basicaly it seems to be a replacement or complement for the IMF focused mainly on developing countries.

I don’t see how we can factually answer a future hypothetical but if the outlook in [Broken BRICs](http://www.foreignaffairs.com/articles/138219/ruchir-sharma/broken-brics) is close to reality, the idea may wither on the wine. The IMF may simply becomes friendlier to developing countries by virtue of \*some \*of the current BRIC members financial growth.