Ahead of the BRICS Summit, China Cautious on BRICS Bank.

• Chinese officials acknowledge the complications in the long running discussions on a deal for a BRICS Development Bank and a joint foreign resrves fund between the five emerging countries, but they expect a positive progress at the next weeks summit in South Africa.

• This will be at the centre of the talks at the Fifth BRICS Leaders meeting in Durban on March 26, which will be attended by Prime Minister, Manmohan Singh and the new Chinease President, Xi Jinoping.
• The First meeting between Dr. Singh and Mr. Xi, expected to take place on the summits sidelines.
• Discussions this past year on setting up a Development Bankand contingency foreign resrve fund , reported to be inthe range of 240 billion Dollars.
• On the specifics of a Development Bank, including the size, functions, composition and hosting city are still under discussion.
• The Foreign Exchange Reserve pool was propsed with the aim of establishing a financial safety net for BRICS countries to reduce risks of flow of capital and risks in the financial sector.
• Wang Jianve, Chief Economist , EXIM Bank of China, told the Bank needed to be as simple  and non political as possible in order to reduce risk of turf fighting.
  
  The Proposed Bank could serve as a operator or manager of a settlement system.