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Screenshot of a breaking news alert e-mail from Q2 2017
The central banks of Brazil, Russia, India, China and South Africa, the countries forming BRICS, today signed an Operational Agreement.
The Agreement outlines the terms of mutual support for member states regarding their participation in the BRICS Pool of Conventional Currency Reserves. The document describes the working procedures of the Pool to be observed by BRICS central banks, and defines their rights and obligations.
The Pool is created to ensure mutual provision of US dollars by the central banks of BRICS members in case any problems with USD liquidity emerge. Thus, this new insurance network is designed to preserve the financial stability of BRICS’ member states.
The total Pool is worth $100 billion. Commitments taken by BRICS members states are as follows:
- Brazil: $18 billion;
- Russia: $18 billion;
- India: $18 billion;
- China: $41 billion;
- South Africa: $5 billion.
The signing of today’s agreement comes after the signing of the Agreement on establishing the BRICS Pool of Conventional Currency Reserves on July 15, 2014 at the summit in Fortaleza (Brazil).
To view the official announcement, click here.