July 7, 2014
Thanks to G.
The new BRICS fund will have $100 billion, though it is formed only by five countries. Source: Alamy / Legion Media
The Russian Government signed a draft agreement on the creation of a $100 billion pool of currency reserves that the BRICS countries are forming to guard against financial shocks. According to the document, the countries’ dollar reserves will remain on the balance sheets of their central banks. However, these reserves can be made available at the request of one of the parties.
Vasily Yakimkin, a senior lecturer at the Russian Presidential Academy of National Economy and Public Administration (RANEPA), says two substructures are being created under the project. The stabilisation fund with capital of $100 billion would be a direct competitor with the IMF. China would contribute $41 billion, Brazil, Russia and India, $18 billion each and South Africa $5 billion. …
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