BRICS_Contingent_Reserve_Arrangement

BRICS Contingent Reserve Arrangement

BRICS Contingent Reserve Arrangement

International fiscal framework

The BRICS Contingent Reserve Arrangement (CRA) is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.[1] It was established in 2015 by the BRICS countries: Brazil, Russia, India, China and South Africa. The legal basis is formed by the Treaty for the Establishment of a BRICS Contingent Reserve Arrangement, signed at Fortaleza, Brazil on 15 July 2014. It entered into force upon ratification by all BRICS states, announced at the 7th BRICS summit in July 2015.

The objective of this reserve is to provide protection against global liquidity pressures.[2][3][4] This includes currency issues where members' national currencies are being adversely affected by global financial pressures.[2][4] The CRA is generally seen as a competitor to the International Monetary Fund (IMF) and along with the New Development Bank is viewed as an example of increasing South-South cooperation.[2]

The capital of $100 billion is distributed as follows:[5] The maximum access states can request from the Arrangement is half (China) to twice the amount of capital contributed.

More information Country, Capital contribution (billion USD) ...

The arrangement is scheduled to start lending in 2016.[3]

See also

References

  1. [1]
    "Treaty for the Establishment of a BRICS Contingent Reserve Arrangement". Government of Brazil. Archived from the original on 25 September 2015. Retrieved 23 July 2015.
  2. [2]
    "What the new bank of BRICS is all about". The Washington Post. 17 July 2014. Retrieved 20 July 2014.
  3. [3]
    "BRICS Bank ready for launch - Russian Finance Minister". Russia & India Report. 10 July 2014. Retrieved 20 July 2014.
  4. [4]
    "BRICS currency fund to protect members from volatility - Russia's top banker". Russia & India Report. 17 July 2014. Retrieved 20 July 2014.
  5. [5]
    "BRICS Development bank top on Agenda of 6th BRICS Summit". IANS. news.biharprabha.com. Retrieved 15 July 2014.
  6. [6]
    http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140719000069&cid=1203%5B%5D Beijing dominates voting rights of BRICS reserve pool
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