08 July 2015, Wednesday, 13:14

BRICS countries have created IMF analogue worth $100 billion


UFA, 8 July 2015. /Bashinform News Agency/. On Tuesday, July 7, the central banks of the BRICS countries signed an agreement on mutual support of countries — members of the organization. Brazil, Russia, India, China and South Africa established a currency reserve pool of the BRICS and set forth the conditions of its operation, according to RBC.

The idea of the pool is to give the member-states an opportunity to provide each other financial assistance in case one of the states has problems with dollar liquidity. The pool is an insurance system aimed at maintaining financial stability in the member-states of the BRICS grouping.

The currency pool is established worth $100 billion. China will contribute about $41 billion, Russia, Brazil and India will chip in $18 billion, and South Africa will contribute $5 billion.

A Contingent Reserve Arrangement of the BRICS countries was signed at the Summit in Fortaleza (Brazil) on July 15, 2014. In May 2015, the Russian President Vladimir Putin ratified the agreement.

Today the BRICS and SCO Summits open in Ufa, which will be attended by Vladimir Putin as the head of the presiding state.

Political coordination and global governance, problems of sustainable development, expansion of cooperation within the association will be discussed at the meeting of the leaders of the BRICS countries. An exchange of views on the prospects of the BRICS New Development Bank and foreign currency reserve pool will be carried out.

The program of activities also provides a meeting in the "outreach" format with participation of heads of states of the BRICS, SCO and the Eurasian Economic Union, meeting with representatives of the Business Council of BRICS. It is scheduled adoption of a number of documents at the end of the Summit.