BRICS Contingent Reserve Arrangement (CRA)?
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CRA was established in 2015 during 7th BRICS summit as a part of the Fortaleza Declaration.
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Aim: It aims to provide short-term liquidity support to the members through currency swaps. It will help to mitigate the Balance of Payment(BOP) crisis situations in case such a situation arises.
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Other objectives:
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It will help member countries to forestall short-term liquidity pressures,
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Moreover, it will provide mutual support and further strengthen financial stability.
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It would also contribute to strengthening the global financial safety net and complement existing international arrangements (from IMF) as an additional line of defence.
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