ST. PETERSBURG, September 6 (RIA Novosti) – A currency reserve fund for the association of five emerging economies known as BRICS will be raised from the member countries’ central bank reserves while capital for the group’s development bank will come from national budgets, Russian Deputy Finance Minister Sergei Storchak said Friday.
On Thursday, the leaders of Brazil, Russia, China, India and South Africa agreed to establish the bloc’s development fund with a capital of $50 billion and a reserve fund of $100 billion.
The reserve fund is being established "in order to promptly react to the situation on currency markets," Storchak said, adding that central banks will be able to conduct swap operations if necessary.
It is designed to cushion short-term liquidity pressure and promote financial stability, Yi Gang, deputy head of the People's Bank of China, said earlier, Xinhua reported.
The member states agreed in March that China will contribute $41 billion, South Africa $5 billion and the others $18 billion each.
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