What is BRICS Contingent Reserve Arrangement (CRA)?
- CRA was established in 2015 during 7th BRICS summit in July 2015.
- The Treaty for the establishment of BRICS CRA was signed at Fortaleza, Brazil in July 2014.
- It is a framework that aims at providing support through additional liquidity and other means to BRICS countries at a time of economic crisis.
- It will be providing support to BRICS countries through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures.
- The initial total committed resources of the CRA will be 100 billion dollars with individual commitments as follows:
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- China ($41 billion),
- India ($18 billion),
- Brazil ($18 billion),
- Russia ($18 billion) and
- South Africa ($5 billion).
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- The CRA is generally seen as a competitor to the International Monetary Fund (IMF) and along with BRICS New Development Bank (NDB) is viewed as an example of increasing South-South cooperation.
- Both CRA and NDB were annoucned as part of BRICS Fortaleza Declaration announced during 6th BRICS summit held in Fortaleza, Brazil in July 2014
- Why in news? It has become operational