IMF congratulates BRICS for new fund, offers help

BRASILIA Thu Jul 17, 2014 5:55am IST

(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Chinese President Xi Jinping and South African President Jacob Zuma smile at a group photo session during the 6th BRICS summit in Fortaleza July 15, 2014. REUTERS/Nacho Doce

(L-R) Russian President Vladimir Putin, Indian Prime Minister Narendra Modi, Brazilian President Dilma Rousseff, Chinese President Xi Jinping and South African President Jacob Zuma smile at a group photo session during the 6th BRICS summit in Fortaleza July 15, 2014.

Credit: Reuters/Nacho Doce

Related Topics

BRASILIA (Reuters) - The International Monetary Fund on Wednesday congratulated the five BRICS countries for creating a new reserves fund that intends to challenge Western dominance in the global lender.

The IMF's managing director, Christine Lagarde, said the lender would like to work with the BRICS in the new fund, which pools together $100 billion in reserves from Brazil, Russia, India, China and South Africa.

BRICS leaders on Tuesday launched the fund and a joint bank of the same size in a bold step to press for a bigger say in the global financial order centered on the IMF and the World Bank.

The fund, known as Contingent Reserve Arrangement, aims to help BRICS countries with balance of payment difficulties.

"IMF staff would be delighted to work with the BRICS team dedicated to this project with a view to reinforcing the cooperation among all parts of the international safety net," Lagarde said in a statement.

China, holder of the world's largest foreign exchange reserves, will contribute the bulk of the reserves pool, or $41 billion. Brazil, India and Russia will chip in $18 billion each and South Africa $5 billion.

(Reporting by Alonso Soto; Editing by Mohammad Zargham)

FILED UNDER:
  • Most Popular
  • Most Shared

Insight

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Phone Masts

Phone Masts

American Tower to buy Bharti Nigeria phone masts for $1.1 billion  Full Article 

Infrastructure Plan

Infrastructure Plan

India targets private cash to build railways to its ports.  Full Article 

Shadow Banking

Shadow Banking

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Oil Prices

Oil Prices

Some fund managers see oil falling to $60 without OPEC cut.  Full Article 

Project Shelved

Project Shelved

Jindal Steel shelves $10 bln project after coal setback.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage