DEALS IN NATIONAL CURRENCIES

Even though the initial funding has been done in dollars the deals or trading among member countries would be done in regional currencies of the respective nations. For developing countries like India, China , or Brazil dealings in dollars gives rise to huge trade losses thus the use of their regional currencies would not only avoid such loss but also promote healthy trade relations among member nations. This regional currency trading is actually a result of past transactions among countries which proved to be a great success. For example in 1991, the trade between Russia and India done in rupee –rouble format made both the countries great trading partners. Also in 2014, India and china got one step closer in trade relations by making deals in the rupee-Yuan form. It is actually a great way to reduce the monopoly of dollars which has become the most powerful n widely accepted currency of the world. Though dealing in regional currencies makes it rather slow as compared to that done in dollars still it's worth practising owing to the huge trade losses faced by these nations when they trade in dollars. 4 . A BOON FOR DEVELOPING NATIONS Due to globalization weak economic conditions of any single country affects all its trading partners. A number of sanctions have been imposed on Russia by US and EU. This can affect its trading with other member nations which in turn would be a problem for other nations too. Thus, Russia is looking forward to the BRICS bank as a great hope for stabilizing its economic conditions. In the same way, the devaluation of Yuan has made china uneasy and is giving rise to a lot of speculations about the collapse of its economy. The BRICS bank could be a supporting pillar for restoring its economic equilibrium. Also with its first president as an Indian its can pave the way for improving India’s infrastructural conditions.