ZN.UA
The five major emerging national economies, known by the acronym BRICS, signed an agreement to create a $ 100 billion pool of foreign- exchange reserves to help each other in case of any problems with dollar liquidity, Russian newspaper Gazeta.ru reported with reference to Russian Central Bank.
Five central banks signed the agreement, which “outlines the terms of mutual support for member states in the framework of the agreement on BRICS Pool of Conventional Currency Reserves,” the Bank’s statement reads.
The pool would be drawn on by the central banks of Brazil, Russia, India, China and South Africa whenever they suffered a shortage of dollar liquidity, helping them maintain financial stability, according to the statement.
The agreement outlines the rights and obligations of members of the pool.
China will contribute $ 41 billion to the currency pool. Brazil, India, and Russia will each provide $ 18 billion, while the remaining $ 5 billion will come from South Africa.