BRICS finance ministers make unified proposal for IMF reforms
The joint statement by the group's finance ministers marks the first time the BRICS countries have agreed on a unified position on the proposed reforms.
They agreed to back the shared proposal at an IMF review meeting coming up in December, which will discuss changes to a quota system that defines contributions and voting rights.
'Quota realignment should reflect members' relative positions in the global economy, while protecting the quota shares of the poorest members,' the ministers wrote in their statement after meetings in Rio de Janeiro, adding that the new formula should increase quotas for developing countries.
Leaders of growing BRICS group gather for Rio summit
The BRICS ministers called for a new formula weighted by economic output and purchasing power, considering the relative value of currencies, which should better represent low-income countries, said a Brazilian official who followed negotiations.
The ministerial meetings came ahead of a leaders summit in Rio for the bloc that expanded last year beyond Brazil, Russia, India, China and South Africa to include Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates.
That has added diplomatic clout to the group, which aims to speak for developing nations in the Global South, urging reforms of institutions long dominated by traditional Western powers.
'With full respect to a merit-based selection process, regional representation must be enhanced for the IMF management, overcoming the anachronistic post-World War II gentlemen's agreement that is unfit for the current world order,' the finance ministers wrote.
Their statement also confirmed discussions to set up a new guarantee mechanism backed by the NDB, a multilateral bank funded by the BRICS, which aims to lower financing costs and boost investment in developing economies, as Reuters first reported on Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Stocks surge, KSE-100 crosses 133,000 level
Trading at the Pakistan Stock Exchange (PSX) commenced on a bullish note, with the benchmark KSE-100 Index crossing the 133,000 level during the opening minutes of trading on Monday. At 9:55am, the benchmark index was hovering at 133,083.47, an increase of 1,134.41 points or 0.86%. Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks including ARL, HUBCO, PSO, SSGC, EFERT, MCB, MEBL and UBL traded in the green. The PSX kicked off fiscal year 2026 at a record high, with the KSE-100 index surpassing the 130,000 points mark for the first time. The index closed the previous week at 131,949 points, marking a 6.1% week-on-week increase. The benchmark KSE-100 index has showcased an 'outstanding performance in FY25, leading all major asset classes with an impressive return of 60.15%', said Arif Habib Limited (AHL). Internationally, stock markets slipped in Asia on Monday amid confusion as US officials flagged a delay on tariffs but failed to provide much detail on the change, while oil prices slid as OPEC+ opened the supply spigots more than expected. The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1. Trump in April announced a 10% base tariff rate on most countries and higher 'reciprocal' rates ranging up to 50%, with an original deadline of this Wednesday. However, Trump also said levies could range in value from 'maybe 60% or 70%', and threatened an extra 10% on countries aligning themselves with the 'Anti-American policies' of the BRICS group of Brazil, Russia, India and China. With very few actual trade deals done, analysts had always suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some. Investors have grown somewhat used to the uncertainty surrounding US trade policy and the initial market reaction was cautious. S&P 500 futures and Nasdaq futures both eased 0.3%. EUROSTOXX 50 futures eased 0.1%, while FTSE futures fell 0.2% and DAX futures held steady. Japan's Nikkei lost 0.5%, while South Korean stocks went flat. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.6%, as Chinese blue chips dropped 0.5%. This is an intra-day update
Business Recorder
an hour ago
- Business Recorder
Stocks surge, KSE-100 gains nearly 1,000 points
Trading at the Pakistan Stock Exchange (PSX) commenced on a bullish note, with the benchmark KSE-100 Index gaining nearly 1,000 points during the opening minutes of trading on Monday. At 9:35am, the benchmark index was hovering at 132,909.43, an increase of 960.37 points or 0.73%. Buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs and refinery. Index-heavy stocks including ARL, HUBCO, PSO, SSGC, EFERT, MCB, MEBL and UBL traded in the green. The PSX kicked off fiscal year 2026 at a record high, with the KSE-100 index surpassing the 130,000 points mark for the first time. The index closed the previous week at 131,949 points, marking a 6.1% week-on-week increase. Internationally, stock markets slipped in Asia on Monday amid confusion as US officials flagged a delay on tariffs but failed to provide much detail on the change, while oil prices slid as OPEC+ opened the supply spigots more than expected. The United States is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by July 9, President Donald Trump said on Sunday, with the higher rates to take effect on August 1. Trump in April announced a 10% base tariff rate on most countries and higher 'reciprocal' rates ranging up to 50%, with an original deadline of this Wednesday. However, Trump also said levies could range in value from 'maybe 60% or 70%', and threatened an extra 10% on countries aligning themselves with the 'Anti-American policies' of the BRICS group of Brazil, Russia, India and China. With very few actual trade deals done, analysts had always suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some. Investors have grown somewhat used to the uncertainty surrounding US trade policy and the initial market reaction was cautious. S&P 500 futures and Nasdaq futures both eased 0.3%. EUROSTOXX 50 futures eased 0.1%, while FTSE futures fell 0.2% and DAX futures held steady. Japan's Nikkei lost 0.5%, while South Korean stocks went flat. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.6%, as Chinese blue chips dropped 0.5%. This is an intra-day update
Business Recorder
3 hours ago
- Business Recorder
Indian rupee to track Asian peers lower after Trump flags return to higher tariffs if no deal
MUMBAI: The Indian rupee is poised to begin the week on a weak note, pressed by the decline in Asian peers following U.S. President Donald Trump's comments that higher tariffs could be reinstated by August if trade deals aren't secured. The one-month non-deliverable forward indicated an open in the 85.48-85.52 range, versus 85.3925 in the previous session. Trump said the United States is nearing the finalisation of several trade deals and will notify other countries of increased tariff rates from Monday to July 9 that will be effective from August 1. On India-US trade deal, the countries are likely to take final decision on mini trade deal within 48 hours, India's CNBC-TV18 reports. In April, Trump announced a 10% base tariff on most countries along with a higher 'reciprocal' rate, which was suspended till this Wednesday to allow for negotiations to reach deals. Trump added that any country aligning with the 'anti-American policies' of BRICS would face an additional 10% tariff. Asian equities dropped in tandem with U.S. stock futures, while regional currencies declined, with overall losses mostly modest. The offshore Chinese yuan slipped to 7.17 to the U.S. dollar, and the Korean won, the Indonesian rupiah and the Thai baht were down between 0.2% and 0.3%. The moves in the Asian currency space are 'pretty manageable,' in light of what appears to be more confusion on the U.S. tariff front, a currency trader said. The rupee may 'fall a bit' considering Asia's moves, he said, adding, 'Still, it doesn't mean much. It's been stuck in a range, and this news doesn't change that.' The dollar index inched higher while U.S. Treasury yields did not react much. Oil prices dropped after OPEC+ surprised markets by hiking output more than expected in August, raising concerns about oversupply.
