BRICS abandon bank initiative in favor of currency crisis fund

03/27/2013 | Bloomberg

After agreeing earlier on establishing a development bank, BRICS nations failed to find common ground for funding the project but did approve a US$100 billion contingency fund for currency crises. China is expected to provide the biggest share at US$41 billion. "The establishment of a self-managed contingent reserve arrangement would have a positive precautionary effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability," said South African President Jacob Zuma at the meeting in Durban.

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