BRICS Moved Towards Creating Common Fund

The BRICS (Brazil, Russia, India, China and South Africa) group on 5th September made progress in the creation of a $100-billion Currency Reserve Fund (CRF) by announcing individual contribution. 

China will contribute $41 billion, while Brazil, Russia and India will chip in with $18 billion each. South Africa, the smallest economy, will commit only $5 billion to the Currency Reserve Fund. 

Indian Prime Minister Manmohan Singh said the development was significant as it came at a time when all emerging market currencies were very vulnerable in recent months on account of global factors like withdrawal of the easy money policy by the U.S., whose economy had shown signs of recovery. 

The fund would eventually allow the five nations to access the fund to deal with short-term volatility in their capital flows, which might negatively impact their currencies. The idea of such a fund found traction in the last BRICS summit in Durban, South Africa, earlier this year. 

Check Your Knowledge

1. Which among the following are true about BRICS?
1. BRICS consists of Belgium, Russia, India, China and South Africa
2. Recently BRICS decided to form a $100-billion Currency Reserve Fund
3. This year, South Africa holds the chair of the BRICS group
4. South Africa was the last country added to the group

Select the correct answer using the codes given below:
(a) 1, 2 and 4 Only
(b) 2 and 4 Only
(c) 1 and 3 Only
(d) 2, 3 and 4

This post contains the Indian current affairs of September 2013. These are short current affairs 2013 notes for quick review.
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