BRICS countries have created an analogue of the IMF worth $ 100 billion – RBC

Tuesday, July 7, the central banks of the BRICS countries signed an agreement on mutual support of countries – participants of the union. From the official press release of the Bank of Russia shows that Brazil, Russia, India, China and South Africa established a pool of conventional foreign exchange reserves of the BRICS and prescribe the conditions of its operation.

The purpose of the establishment and operation of the pool – “the mutual granting by central banks of the countries – members of the BRICS cash in US dollars in case of problems with dollar liquidity. ” “Thus, the creation of a safety mechanism aimed at maintaining financial stability in the member states”, – stated in a press release.

The agreement signed by the member countries in Moscow on Tuesday, regulates the conditions of mutual support: there detailed procedures that are performed by the central banks of the BRICS in a pool, as well as identify their rights and obligations, indicating CBA press service.

The total amount of the pool is set to $ 100 billion, of which $ 41 billion is required to give China at $ 18 billion – Brazil, India and Russia, another $ 5 billion – South Africa.

The pool is part of the reserves of central banks, says chief economist Vladimir Tikhomirov FG BCS. “This is a mutual fund. Countries – participants of the BRICS will provide financial and monetary support when the need arises “, – he said.

As mentioned before RIA Novosti news agency, the reserves will be used as an instrument of support in the event of short-term pressure on the balance of payments, and as a preventive tool in the event of balance of payments problems. Each participating country will have the right to ask for help, the amount of which will be determined by special factors. It is assumed that will manage a pool of Governing Council, Standing Committee and coordinator, the functions of which will carry the country – chairman of the BRICS.

Tikhomirov believes that to date the fund is unlikely to be in demand. “Rather, it is a political decision. Additional signal that there is support for the BRICS countries, “- he said.

According to Tikhomirov, this tool can be used in case of deterioration of the geopolitical situation. “For example, the tightening of sanctions against Russia, particularly in blocking operations SWIFT, if it happens,” – he said.

The agreement on the establishment of a pool of conventional foreign exchange reserves of the BRICS countries was signed July 15, 2014 at the summit Fortaleza (Brazil). In May 2015, Russian President Vladimir Putin ratified the agreement on the establishment of a pool of foreign exchange reserves of the BRICS countries.