© Summit's photohost agency
© Summit’s photohost agency

The Chiefs of BRICS Central Banks have signed an operating agreement on the currency reserve pool, according to a statement by Russia’s Central Bank.

The signing ceremony took place in Moscow after the meeting of the Finance Ministers and Chiefs heads of the Central Banks of BRICS which precedes the summit of the organization in Ufa.

The operating agreement contains a detailed description of the procedures which are carried out by the central banks of BRICS states within the currency reserve pool, defines their rights and duties.

The total amount of the currency reserve pool is $100 bln. The countries’ commitments are as follows: China — $41 bln, Brazil — $18 bln, Russia — $18 bln, India — $18 bln, South Africa — $5 bln.

The representatives of BRICS signed an agreement on establishing a currency reserve pool in Brazil on July 15, 2014. The official name of the agreement and the pool is contingent reserve arrangement (CRA).

The idea of the pool is to give the member-states an opportunity to provide each other financial assistance in case one of the states has problems with dollar liquidity.

The pool is an insurance system aimed at maintaining financial stability in the member-states of BRICS.