Contingent Reserve Arrangement
The Contingent Reserve Arrangement ( CRA ) is an agreement to establish an organization that administers a reserve fund of the BRICS countries . Its tasks include promoting cooperation in monetary policy, expanding trade, granting loans and providing technical assistance between countries in the BRICS group. The agreement enables the provision of liquidity via currency swaps.
The CRA was decided in 2014 together with its sister organization, the New Development Bank (NDB) in Fortaleza.
The reserve fund will initially be made up of five states with an initial capital of $ 100 billion.
Member States' shares
The People's Republic of China will initially provide the reserve fund with more than $ 41 billion, Brazil , Russia and India each and South Africa $ 18 billion.
tasks and goals
If a member has financial difficulties, they can turn to the reserve fund for help. In the 71-point “Declaration of Fortaleza”, the founding states emphasize that the reserve fund is a supplement to the IMF for the special interests of the BRICS states.
Individual evidence
- ↑ More independence: emerging countries set up development bank and monetary fund. (As of July 16, 2014).
- ↑ Counterbalance to the IMF: Emerging countries create funds with 100 billion dollars (as of July 16, 2014).