BRICS countries may reach consensus at next months G20 summit on creating a $100 billion currency reserve fund to help ease short-term liquidity pressure and safeguard financial stability of major emerging economies,a senior Chinese central bank official said today.
Yi Gang,deputy governor of the Peoples Bank of China,said leaders of the BRICS group,Brazil,Russia,India,China and South Africa,have agreed on the ratio of contributions,operation mechanisms,governance structure and loan-to-value ratio of a Contingent Reserve Arrangement (CRA). There will be more consensus on the arrangement by BRICS leaders when they meet on the sidelines of the G20 summit to be held in St Petersburg,Russia,on September 5 and 6,Yi said.
We will see the launch of the fund in the foreseeable future, Yi was quoted as saying by the state-run Global Times. The fund offers a means to prepare for any negative effect from the volatility in the global financial market, Zhao Xijun,deputy director of the Finance and Securities Research Institute at the Renmin University of China,said.