The purpose of this reserve is to provide protection against global liquidity pressures. [2] [3] [4] These include monetary problems in which members` national currencies are affected by global financial pressure. [2] [4] The rating agency is generally seen as a competitor to the International Monetary Fund (IMF) and is seen, along with the New Development Bank, as an example of strengthening South-South cooperation. [2] Russian President Vladimir Putin praised the new BRICS Reserve Agreement (CRA) as a replacement for the IMF and said it “creates the basis for effective protection of our economies from a financial market crisis.” But is that the case? The idea that $5.4 billion from the BRICS rating agency would make a difference to Russia in a real financial crisis is ridiculous. Putin`s statement is clearly a political exaggeration, which is why Russia currently has more than $400 billion in reserves. BRICS COUNTRY knows why they have such large foreign exchange reserves, as we show at the bottom of the situation. Reference to the press service is mandatory if you intend to use this material. Under the terms of the agreement, China can borrow up to $6.2 billion without having to participate in an IMF program; Brazil, Russia and India $5.4 billion; And South Africa $3 billion. But it`s chicken food compared to Russia and Brazil`s crisis borrowing from the IMF over the last 20 years, as we show in the top numbers. In the 1990s, the IMF approved loans to Russia for $38 billion (SDR 24.786 billion). In 2002 alone, the IMF approved a 15-month confirmation agreement of about $30 billion for Brazil. Private net financial flows to emerging markets are now about ten times higher than in 2002, meaning that the volume of credit needed to solve balance-of-payments financing problems would be even greater. The capital of $100 billion is distributed as follows:[5] The maximum access that states can demand from the agreement is half (China) and is double the capital provided.

People`s Bank of China: contract for the implementation of an agreement on the quota reserves of the BRICS The agreement is expected to start in 2016. [3] Time: bricS do not like the dollar-dominated global economy, but they are immediately connected with it (PDF download and unlimited online access): in addition, the Governing Council approved the rules of procedure of the Standing Committee that define the operational procedure of this body responsible for operational support to the activities of the Pool: defines the composition and functions of the Standing Committee , the skills of the coordinating country. , meeting and decision-making procedures (with a simple majority of weighted votes on resource issues and on the basis of consensus on other issues), sanctions for non-compliance with obligations and dispute resolution procedures. On 4 September 2015, members of the CRA BRICS Council and the constituents of the permanent body were formed in Ankara, Turkey. The holding of the first meetings of Cra`s management bodies marks the beginning of the full functioning of the rating agency as an international institution, whose main objective is to strengthen and develop cooperation between the BRICS. Financial Times: The BRICS Bank Is a Glimpse of the Future Read more about Benn`s latest award-winning book, The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White and the Making of a New World Order, which the Financial Times calls “a triumph of economic and diplomatic history.” In 2014, the BRICS PAYS introduced the Contingent Reserve Arrangement (CRA) to supposedly compensate for the BRICS`s frustration with the non-materialization of the Reforms of the International Monetary Fund (IMF), long promised but blocked by the United States until the end of 2015.