What is a Contingency Fund?
The BRICS finance ministers formally took the first step in creating a $ 100 billion emergency reserve fund in Durban, South Africa. According to reports, China plans to contribute 41 billion yuan, accounting for nearly half, Brazil, Russia and India will each contribute 18 billion yuan and South Africa 5 billion yuan.
Emergency reserve fund
Right!
- Chinese name
- Emergency reserve fund
- Foreign name
- Contingency Reserve Arrangement
- Member
- BRICS
- Funding
- $ 100 billion
- The BRICS finance ministers formally took the first step in creating a $ 100 billion emergency reserve fund in Durban, South Africa. According to reports, China plans to contribute 41 billion yuan, accounting for nearly half, Brazil, Russia and India will each contribute 18 billion yuan and South Africa 5 billion yuan.
- The BRICS countries agreed to establish an emergency reserve fund with a central bank of each member state managing a $ 100 billion fund. The fund will play a precautionary role in avoiding pressure on short-term capital flows and strengthening global financial stability.
- Contingency Reserve Arrangement (CRA, emergency reserve fund) is one of the agreements reached after the BRICS leaders' meeting. The funds are sourced from central bank reserves of various countries to prevent short-term capital flow pressures in various countries ( forestall short-term liquidity pressures ), strengthen global financial stability .
- In addition, the BRICS countries also decided to establish the BRICS Development Bank to provide financing infrastructure projects for infrastructure construction in the five member states.