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

This fact sheet provides an overview of the proposed New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) being negotiated by the BRICS nations as of July 2014.

• The New Development Bank (NDB) is planned with an initial capital of $50 billion, with each of the five BRICS member countries contributing $10 billion. Governance is based on equal say for each member country. 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. While its exact mandate is unclear, it is expected to fund infrastructure development and likely co-finance projects with the World Bank and other multinational organisations.
• The Contingent Reserve Arrangement (CRA) is a $100 billion pool of foreign exchange designed to provide currency to BRICS governments during crises, such as short-term liquidity problems or Balance of Payments Crises. Unlike the NDB, the CRA is exclusively for BRICS countries. Funding is provided via pledges held at each country's Central Bank rather than a physical fund. Contributions are uneven: China provides $41 billion, Brazil, Russia, and India provide $18 billion each, and South Africa provides $5 billion.
• The NDB's potential for expansion includes the possibility of non-BRICS countries buying in, specifically large developing nations such as Turkey, Indonesia, and Nigeria, as well as developed countries. Regarding its headquarters, Shanghai is identified as the leading candidate.

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} }