India to contribute $18 billion to BRICS' $100-billion Forex reserves pool

Discussion in 'Economy & Infrastructure' started by Illusive, Jul 8, 2015.

  1. Illusive

    Illusive Senior Member Senior Member

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    India to contribute $18 billion to BRICS' $100-billion foreign exchange reserves pool


    MOSCOW: India will contribute $18 billion to the $100 billion foreign-exchange reserves pool that is being set up by five nations of the BRICS grouping to help each other "in case of any problems with dollar liquidity".

    Brazil, Russia, India, China and South Africa have signed an agreement to set up the $100 billion pool, with maximum $41 billion coming from China.

    India's contribution of $18 billion to the Pool will be same as that of Brazil and Russia. South Africa would chip in $5 billion.

    "The central banks of Brazil, Russia, India, China and South Africa have signed Operational Agreement on July 7, 2015 in Moscow. The Agreement outlines the terms of mutual support for member states in the framework of the Agreement on BRICS Pool of Conventional Currency Reserves," the Russian Central Bank said in a statement.

    The fund will be an "insurance instrument" that members nations could draw on if they experience problems with their balance of payments.

    The Pool will go into force on July 30.

    The Operational Agreement details the working procedures of the Pool to be observed by BRICS central banks, and defines their rights and obligations.

    "The Pool is tasked to ensure mutual provision of US dollars by the central banks of BRICS members in case of any problems with dollar liquidity. Thus, this new insurance network is designed to maintain financial stability of its member states," the statement said.

    The Agreement on setting BRICS Pool of Conventional Currency Reserves was signed on July 15, 2014 at the summit in Fortaleza (Brazil).

    The agreement was signed in Moscow after a meeting of the Finance Ministers and heads of the central banks of the BRICS countries.

    The Pool would help BRICS members to maintain financial stability in case of volatility in dollar exchange rate.

    India's foreign exchange reserves dipped by a marginal $237.5 million, to $355.221 billion, in the week to June 26 on account of slight decline in a key component, the Reserve Bank of India data showed.

    The agreement on the insurance pool comes ahead of the two-day Summit of the BRICS leaders in Ufa. The Summit could look at the possibility of starting credit facility in local currency by the BRICS Bank.

    The first head of the Bank is noted Indian banker K V Kamath.

    The BRICS nations account for nearly $16 trillion in GDP and 40 per cent of the world's population.
     
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  3. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    India should have its own plans to establish its own Banks rather than going into already established powers.
     
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  4. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    Modi should have given this money to delhi humpf. Salary rok ke videsh me paisa baat rahe hain. :crazy:
     
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  5. Illusive

    Illusive Senior Member Senior Member

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    Why, this is better and then there is AIIB. We dont have the monetary power to do this ourselves atleast now.
     
  6. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Instead we should go for bilateral agreements and invest in our vicinity first, .i.e until we emerge.
     
  7. Illusive

    Illusive Senior Member Senior Member

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    Dilli main bijli paani muft main milta hain yaar, wahan ki sarkar ij the bestest :rofl:
     
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  8. Illusive

    Illusive Senior Member Senior Member

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    Our vicinity area will eat the money and not pay back like Greece did to Germany:biggrin2:
     
  9. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    But we do have some good emerging countries in ASEAN :)
     
  10. Illusive

    Illusive Senior Member Senior Member

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    True, but we should increase trade with these nations first so that we gain from their growth plus invite Indonesia into BRICS.
     
  11. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    No groupings as of now dude .... first go for bilateral agreements, emerge and then we should try to form blocks.
     
  12. Rowdy

    Rowdy Co ja kurwa czytam! Senior Member

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    Pakistan :lol: ...............
     
  13. aliyah

    aliyah Regular Member

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    with 18bil $ india,Brazil, russia can borrow 30bil$ from the bank,SA can borrow 10bil $,china can borrow only half of what's she investing.......so its much better investment then u think.....govt is not dumb
     
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  14. Compersion

    Compersion Senior Member Senior Member

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