BRICS Consider Pooling Foreign-Currency Reserves, Gordhan SaysAndres R. Martinez
The BRICS group of emerging-market nations will consider plans to pool foreign-currency reserves when heads of state meet next month, South African Finance Minister Pravin Gordhan said.
The funds may be used to “support each other at times of balance of payments or currency crisis,” Gordhan said in his budget speech in Cape Town today. China, Russia, Brazil, India and South Africa have combined reserves of $4.5 trillion, he said.
BRICS leaders meeting in Durban, South Africa in March will also discuss proposals to create a regional development bank and set up a trade insurance fund, Gordhan said.
A BRICS-led bank “is intended to mobilize domestic savings and co-fund infrastructure in developing regions,” he said. “Work is under way on creating a trade and development risk pool. The aim is to establish a sustainable and alternative insurance and reinsurance network for the BRICS countries.”