Putin signs BRICS $100 billion currency pool dealStaff writer ▼ | May 4, 2015
Russian President Vladimir Putin has ratified a deal to establish a $100 billion foreign currency reserve pool for the BRICS group.
Cooperation To protect the national currencies against the volatility
On Wednesday the deal was ratified by Russia's upper house of Parliament, the Federation Council. According to the deputy head of the Federal Council Committee for Budget and Financial Markets, Sergey Ivanov, the currency pool will primarily support the balance of payments of the BRICS member states and will contribute to the protection of the national currencies against the volatility in the world currency markets.
The goal of the pool is so that BRICS member states can urgently replenish their liquidity from it in different proportions to resolve problems with their balance of payments.
China will make the biggest contribution to the pool - $41 billion. Russia, Brazil and India will donate $18 billion each, while South Africa's investment will be $5 billion.
The fund is expected to be maintained by a managing council, a permanent committee and a coordinator who will be from the country of the current president. ■