BRICS to set up $100 billion reserve fund Back-up for emerging economies

The leaders of the BRICS (Brazil, Russia, India, China and South Africa)group of influential emerging economies have agreed to create a US$ 100 billion pool of currency reserves to serve as a buffer against financial shocks.

South Africa, being the smallest of the five economies, will contribute $5-billion (R51-billion) to the contingency reserve arrangement, as it is known, which will help BRICS member countries to fund current account deficits, among other things.

China will contribute the lion's share of the fund - $41 billion - while Brazil, Russia and India will each contribute $18 billion.

The five BRICS leaders, including South African President Jacob Zuma, met briefly in St Petersburg, Russia on Thursday on the sidelines of the G20 summit, saying in a statement after their meeting that they had noted "the continued slow pace of the recovery, high unemployment in some countries, and ongoing challenges and vulnerabilities in the global economy, particularly in advanced economies".

www.bbqonline.co.za...

This seems like BRICS bank is setup to Rival the world bank and the IMF . This bank should be operational by 2015 ..

Just back in late march and early April there was a report saying they dumped the Euro
rt.com...

reply to post by maddy21

Hmm, I suppose any competition to the IMF is good on the face of it. Inter-state banks can't really be a good thing just by my instincts. I don't understand how they will not also be predatory, we shall see...