contingent-reserve-arrangement

  • Considering the increasing instances of the global financial crisis, BRICS nations signed the BRICS Contingent Reserve Arrangement (CRA) in 2014 as part of the Fortaleza Declaration at the Sixth BRICS summit.
  • The BRICS CRA aims to provide short-term liquidity support to the members through currency swaps to help mitigating BOP crisis situations and further strengthen financial stability.
  • The initial total committed resources of the CRA shall be one hundred billion dollars of the United States of America (USD 100 billion).
  • It would also contribute to strengthening the global financial safety net and complement existing international arrangements (IMF).