Published on Sep 6, 2015
The $100 billion BRICS Contingent Reserve Arrangement (CRA) has become fully operational following the inaugural meetings of the BRICS CRA Board of Governors and the Standing Committee in the Turkish capital of Ankara.
“The first meetings of the governing bodies mark the start of a full-scale operation of the BRICS Contingent Reserve Arrangement as an international institution with activities set to enhance and strengthen cooperation,” said a Russian Central Bank statement on Friday.
BRICS leaders Xi Jinping, Vladimir Putin, Jacob Zuma, Narendra Modi and Dilma Rousseff witnessed the signing of the agreement on the CRA in the Brazilian city of Fortaleza in July 2014.
The agreement entered into force on July 30, 2015.
China will provide the bulk of the funding with $41 billion, Brazil, Russia and India with $18 billion each, and South Africa with $5 billion.
The CRA is meant to provide an alternative to International Monetary Fund’s emergency lending. In the CRA, emergency loans of up to 30 per cent of a member nation’s contribution will be decided by a simple majority. Bigger loans will require the consent of all CRA members.
1 thought on “$100 Billion BRICS Monetary Fund Now Operational (Video)”
Yes, the east is rising while the west is falling……All of these nations (except China) have healthy debt levels to GDP…..far lower than the triple digit debt to GDP suffered by all members of the Euro Zone and the US (as of a few months ago, hit 100%). All of the member nations (and many others) dumped the dollar for electronic currencies over the last five years. Technology has rendered the need for any world reserve currency obsolete…..
BRICS will be lending in Yuan and their own basket of currencies. Now that technology allows all nations to trade with each other using their own currencies, without first converting to the dollar, international trade is far easier than ever before in modern history.
At the beginning of 2010, 100% of all international trades were completed in dollars. Today, it is less than 50% and falling…..BRICS is the eastern response to the IMF, ECB and FED…..It was inevitable.
Since China has all our industries and much of the world’s MFG, their current economic implosion will not destroy them…..The greedy corporations who moved their MFG to China to enjoy 20+ years of slave labor had to do certain things to be accepted.
I worked in employment, in the last two decades of my career, I was a retained researcher/recruiter for retain search firms and major corporations. As a result, I have first hand experience with the great exodus to China. I watched very carefully to see what was happening……
The most valuable, and expensive part of any viable company was human resources. China offered a way to cut those costs to nothing, and they were so greedy, they didn’t look ahead, or even bother to weigh the possible costs and consequences of their acts……Now, they are going to pay….it couldn’t happen to nicer people…..
Corporations, in order to be accepted into China, and given slave labor for 20+ years had to give the Chinese government complete access to their trade secrets and had to partner with them when establishing MFG sites. GE gave them all their secrets, including power plants and nuclear technology……Apple did the same……
The corporations who so greedily. and with such poor foresight, agreed to all of this are now in a pickle. They cannot just pull up stakes and move, they are tied into partnership with the Chinese government…..The implosion in China will have direct consequences for them……Serves them right.
The working conditions of the workers for Apple are so bad, they finally put netting around the building where they work, eat and sleep to cut down on the suicides……I would never buy an apple product……What horrible greedy guts!
The Wall Street Journal covered this situation in depth before their good reporting was muzzled……Too real, I guess. No whistleblowers are allowed, this administration has effectively shut them down….the persecution is too vicious. Just look at Ed Snowden’s situation……