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$100bn BRICS monetary fund now operational
September 5, 2015, 4:03 pm

The five leaders of BRICS met in Ufa, Russia on 9 July 2015  [Xinhua]

The five leaders of BRICS met in Ufa, Russia on 9 July 2015 [Xinhua]

The $100 billion BRICS Contingent Reserve Arrangement (CRA) has become fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara.

“The first meetings of the governing bodies mark the start of a full-scale operation of the BRICS Contingent Reserve Arrangement as an international institution with activities set to enhance and strengthen cooperation,” said a Russian Central Bank statement on Friday.

BRICS leaders Xi Jinping, Vladimir Putin, Jacob Zuma, Narendra Modi and Dilma Rousseff witnessed the signing of the agreement on the CRA in the Brazilian city of Fortaleza in July 2014.

The agreement entered into force on July 30, 2015.

China will provide the bulk of the funding with $41 billion, Brazil, Russia and India with $18 billion each, and South Africa with $5 billion.

The CRA is meant to provide an alternative to International Monetary Fund’s emergency lending. In the CRA, emergency loans of up to 30 per cent of a member nation’s contribution will be decided by a simple majority. Bigger loans will require the consent of all CRA members.

Meanwhile, Finance Ministers from the five BRICS countries have met in Ankara on the sidelines of the G20 meeting of global finance ministers and central bankers, amid growing worries about the state of the global economy.

With a looming US federal Reserve rate hike and Chinese market turbulence sending shock waves through emerging markets, the IMF has lowered its global growth forecast.

A G20 communique after their two-day meeting in the Turkish capital Ankara noted that global growth was falling short of expectations.

“Global growth falls short of our expectations. We have pledged to take decisive action to keep the economic recovery on track and we are confident the global economic recovery will gain speed,” the statement said.

The G20 vowed to “carefully calibrate and clearly communicate our actions … to minimise negative spillovers, mitigate uncertainty and promote transparency”.

As the BRICS countries launched new financial institutions like the $100 billion BRICS Bank, the China-led Asia Infrastructure Investment Bank, and a $100 billion BRICS currency reserve fund, the IMF has once again delayed voting reforms to give emerging countries greater say.

 

TBP

12 Responses to $100bn BRICS monetary fund now operational

  1. Heraldo Reply

    September 5, 2015 at 6:12 pm

    Por favor, melhorem a tradução!

  2. Deanna Johnston Clark Reply

    September 6, 2015 at 12:54 pm

    My Dad and many other Americans gave up the best years of their lives to free China, Burma, Indonesia, Singapore, and others from fascism in Japan.
    Isn’t it time to stop equating the western elite with ordinary American people?
    You want fair play…so do most of us.

    • Ayran Reply

      September 7, 2015 at 4:41 am

      Agreed. It’s a coterie of neocon neo-nazis, that now control a significant portion, though not by any means all, of the heights of power in the United States.

    • Fidel Hurtado Reply

      September 7, 2015 at 7:40 am

      Your dad and many other good soldiers had been deceived by the elite to liberate the victim countries of “fascist Japan”. Did anyone at that time realize that it was so? Surely not because we were all naive. World war I & II were nothing more than the elites’ agenda of population reduction. The emerging markets have been bullied for as long as anyone can remember because the western elite set the rules for everyone to follow except for themselve. Is it any wonder when westerners come to third world countries, they are just dying to break any rule they can. Why? majority of westerners feel that they are superior. So, level playing field is something that emerging markets have to fight for to survive. For that some emerging countries Presidents, PM etc may get killed by some mysterious means or get sanctions like Russia and many other countries. Sounds fair?……

      🙂 🙂 🙂

    • Gaijin Mik Reply

      September 7, 2015 at 7:49 pm

      USa help to free indonesia singapore from facism?? it looks like China did the most and died more than what USa did to help us free from facism. USa jus simply played a dirty game by dropping an atomic bomb. ww2 is not won because of USA . in fact USA did lesser than russia china and european countries to help fight facism

    • Sue Woods Reply

      September 8, 2015 at 12:18 am

      so do most of the ordinary people of the whole earth. But the pope has to exert satans power so the elite help him by doing their part for the New World Order and the eventual One World Religion.
      I don’t care if you believe it. But if you don’t and you do nothing to stop it, I want to be there to see your face when you do finally WAKE UP.

    • An Reply

      September 8, 2015 at 3:39 am

      and divided Korea.

    • Marcelo Adrian Garcia Reply

      September 9, 2015 at 12:39 pm

      American good people faught for indipendence from those bankers that today, through private federal reserve bank, since 1930, as president Wilson permited, printing money without gold backing the bad masons have taken over. The Kennedy’s where murder when they tried to close the fed. Debt is another way of killing people and wars have been sponsored by those same old bankers such as the Rothchild and Rokefeller families. We’re geting free from that bondage from the Brits and going to the Brics! in a free world from debt, coil, oil and all that destrys our healt such as Mac donalds, Monsando GMO, kem trails, and transhumanism that have killed more people lately than any other war. god bliss you.

      • Steven MacDonald Reply

        October 4, 2015 at 5:22 pm

        Amen, brother.

  3. aaron nix Reply

    September 6, 2015 at 7:25 pm

    In years to come people will look upon the ruins of America like the ruins of Rome and wonder how something so big could have failed.
    We will repeat history however and only when it’s too late will we understand the mistakes of our past.
    The fall of the west will be a brutal page that echoes in history for a century.

    • Shark8ttack Reply

      September 7, 2015 at 8:55 pm

      The ruins of America happened because the Fed Resrve was created to make a certain # of people wealthy on the backs of American citizens…equivalent to a bomb dropped on the people for someone elses gain.

  4. James Reply

    September 7, 2015 at 5:22 pm

    Congratulations, all the best

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