BRICS set up bank to counter Western hold on global finances

(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Chinese President Xi Jinping and South African President Jacob Zuma smile at a group photo session during the 6th BRICS summit in Fortaleza July 15, 2014. REUTERS/Nacho Doce

FORTALEZA Brazil (Reuters) - Leaders of the BRICS emerging market nations launched a $100 billion (£58.36 billion) development bank and a currency reserve pool on Tuesday in their first concrete step towards reshaping the Western-dominated international financial system.

The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai, and India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-country group announced at a summit.