Leaders from Brazil,Russia,India,China & South Africa (BRICS) approved a $ 10,000 Cr fund to combat currency crises, while failing to reach an agreement on financing for a development bank.
China may provide the bulk of the funding for the foreign currency pool, Russian Finance Minister Mr. Anton Siluanov in Durban, South Africa.
Negotiators are considering proposals for China to contribute $ 4,100 Cr, Brazil, Russia & India to provide $ 1, 800 each and South Africa $ 500 Cr, he said.
The establishment of a self-managed contingent reserve arrangement would have a positive precautionary effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support & further strengthen financial stability, South African President Mr. Jacob Zuma said after leaders from the 5 nations met in Durban.
The BRICS countries,which have 43 % of the worlds population & total foreign-currency reserves of $ 4.4 trillion (trillion = One lakh Crore), are seeking greater financial sway to match their rising economic power.
While leaders agreed that a development bank was feasible & viable,they failed to provide detail on how it would be funded.
The BRICS nations have been studying the viability of the bank for a year.In the run-up to the summit,officials from Brazil & Russia indicated each country could contribute $ 10 billion. We have reached broad consensus, Chinese President Mr. Xi Jinping said at the summit closing.
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