The supposed strategy of the U.S. to derail the BRICS unity hasn’t worked out the way is was intended to.
In fact, despite sanctions, economic downturns and trashing corruption scandals, the BRICS have money in the bank and the IMF @ bay.
Meanwhile European banks are hanging on for dear life, with the IMF reporting in June that the Deutsche Bank was the biggest single risk to the regions financial system.
This doesn’t happen in Brazil and even government owned Banco do Brasil is not going to bring the country down. Russia has shuttered a few mid-cap banks over the last two years and is burning through one its sovereign wealth funds but still has over $320 billion sitting in its core central bank currency reserve fund.
China is slowing, but still growing, while India’s policy implementation is slow as ever, there is no political or economic crisis in the works, nor on the horizon.
South Africa hasn’t touched an IMF loan since 1999 and their economy is actually growing. It is not great, incomes are in decline, but it better than Spain and even Japan.
One reason why the BRICS is still on course is that they have not yet required a bailout, based on weak local banking and sovereign debt priced in dollars or euros.
The BRICS have boosted their levels of foreign exchange reserves after the last crisis in the early 2000’s, and joined forces between their central banks to provide financial support when needed.
Forbes / AA Magnum News 2016.