Russian Government to review draft law on BRICS Group’s foreign currency reserve pool

Russian Government approved the draft law on ratification of the Treaty establishing BRICS foreign currency reserve pool. The document will be reviewed at the Government meeting, according to the Government website. According to the Government, "Ratification of the Treaty establishing the foreign currency reserve pool will contribute to Russia’s strategic objectives in the field of monetary cooperation within the Concept on Russia's participation in BRICS. That includes, in particular, developing a privileged relationship with Russia’s BRICS partners." The Treaty establishing the foreign currency reserve pool was signed by Russia on July 15, 2014 in Brazil during VI BRICS summit in Fortaleza. The document was developed by BRICS countries’ central banks and finance ministries following countries’ leaders’ instructions after their meeting in Los Cabos, Mexico on June 18, 2012. "Starting the foreign currency reserve pool is one of the most important practical initiatives of the Group," the representative of the Russian Government said, According to the Treaty, in case of problems the BRICS member states will be able to urgently replenish their liquidity from this pool in different proportions to resolve problems with their balances of payments. The specific parameters of these operations will be recorded in a special agreement between the central banks. The foreign currency reserve pool of the BRICS group, which comprises Brazil, Russia, India, China and South Africa, will total $100 billion . "The distribution will be as follows: South Africa will contribute $5 bln, Russia, India and Brazil will allocate $18 bln each while China will provide the remaining funds ($41 bln)," the document said. As TASS reported earlier, Russia assumed the BRICS rotating presidency from April 1. As Russian Finance Minister Anton Siluanov said earlier, Russia’s BRICS presidency would focus on establishing the group’s New Development Bank and currency pool. Read more