The BRICS New Development Bank and Contingent Reserve Arrangement at a Glance

The document outlines the initial capital, governance, and operational goals of the New Development Bank and the Contingent Reserve Arrangement. The NDB is intended for infrastructure and development projects with an initial capital of $50 billion, while the CRA is a $100 billion foreign exchange pool designed to support BRICS governments during liquidity or balance of payments crises.

• The New Development Bank (NDB) will start with $50 billion in capital, with each of the five BRICS countries contributing $10 billion. Its initial lending capacity is estimated at $24 billion, potentially growing to $34 billion over ten years, or up to $48 billion if leveraged more aggressively.
• The NDB is expected to focus on infrastructure development and will be governed by an equal say for each member country. While its headquarters are undecided, Shanghai is the primary candidate. The bank is likely to co-finance projects with the World Bank and other multinational organisations rather than replacing them.
• The Contingent Reserve Arrangement (CRA) is a $100 billion pool of foreign exchange intended to assist BRICS countries during short-term liquidity problems or Balance of Payments Crises. Unlike the NDB, the CRA is exclusively for BRICS countries.
• CRA contributions are uneven: China will provide $41 billion, Brazil, Russia, and India will each provide $18 billion, and South Africa will contribute $5 billion. Funds are not physically pooled but remain with each country's Central Bank as pledges.

APA

Wood, C. (2014). The BRICS New Development Bank and Contingent Reserve Arrangement at a Glance. South African Institute of International Affairs. https://saiia.org.za/research/the-brics-new-development-bank-and-contingent-reserve-arrangement-at-a-glance/

Chicago

Wood, Christopher. The BRICS New Development Bank and Contingent Reserve Arrangement at a Glance. South African Institute of International Affairs, 2014. https://saiia.org.za/research/the-brics-new-development-bank-and-contingent-reserve-arrangement-at-a-glance/.

Wikipedia

{{cite report |last1=Wood |first1=Christopher |title=The BRICS New Development Bank and Contingent Reserve Arrangement at a Glance |publisher=South African Institute of International Affairs |date=8 July 2014 |url=https://saiia.org.za/research/the-brics-new-development-bank-and-contingent-reserve-arrangement-at-a-glance/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wood2014brics, author = {Wood, Christopher}, title = {{The BRICS New Development Bank and Contingent Reserve Arrangement at a Glance}}, institution = {South African Institute of International Affairs}, year = {2014}, month = jul, url = {https://saiia.org.za/research/the-brics-new-development-bank-and-contingent-reserve-arrangement-at-a-glance/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }