BRICS Steady Progress on Setting Up Alternate Financial Institutions

With the establishment of the BRICS New Development and Contingency Reserve Agreement as a centerpiece, other institutions required to have a functioning alternative to the disintegrating trans-Atlantic system are also being put in place. Russia and China continue to work on establishing a BRICS version of the SWIFT bank clearing system. And China has now taken steps to set up a new credit-rating agency and other facilities to help with the financing of projects along the New Silk Road.

That new credit-rating agency has just given the highest ranking to China, Russia, Malaysia, Singapore, and the UAE—not exactly what one might expect from S&P and Moodys!

Xinhua Finance describes its new service as follows:

“The Internet-based package is currently available in both Chinese and English, including four major products and services — the Silk Road Database, Xinhua Credit Reports, Consulting and Thinktank Services and a `business match-making’ instant messaging system. The database includes information on laws and regulations, latest policies, macroeconomic development, project information and investment risk assessment in countries along the Belt and Road.

“The credit information service offers credit and risk assessment reports on countries, companies and investment projects as references for investment decisions. The consulting and thinktank service provides clients with customized consultations from Xinhua’s global information networks and professional economic analysts.

“Another innovative feature is a deal-making platform designed to facilitate online business negotiations and promote business connections for investment projects. Xinhua also released an index on the technology, infrastructure and investment environment of Belt and Road countries on Thursday.

“With 41 sub-indices, the index analyzes the technology levels, economic development, as well as political, social, communication and transportation conditions of countries along the Belt and Road routes. Singapore, China, Malaysia, the United Arab Emirates and Russia are the top-performing countries among those surveyed, the index showed.”