Leaders of the Brics group of nations – Brazil, Russia, India, China and South Africa – have said they will set up a $100bn (£65bn) fund to guard against financial shocks.
The move comes as emerging economies across the world have been hit by speculation that US may scale back its key economic stimulus programme soon.
That has seen investors pull out money, hurting currencies of emerging nations.
The Brics leaders said the details of the fund were still being worked out.
“The initiative to establish a Brics currency reserve pool is at its final stage,” Russian President Vladimir Putin said during the G20 summit in St Petersburg.
“Its capital volume has been agreed at $100bn,” he added.
via BBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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