The central banks of Brazil, Russia, India, China and South Africa (BRICS) on 7 July 2015 signed Mutual Assistance Agreement (MAA) aimed at operationalising the BRICS Contingent Reserve Arrangement (CRA) of 100 billion US dollars.
The document was signed after a meeting of BRICS finance ministers and central bank governors in the Russian capital Moscow.
MAA is an operating agreement on mutual support specifying the procedures to be followed by the central banks of BRICS countries as part of the CRA and defines their rights and obligations.
Features of BRICS Contingent Reserve Arrangement
• Its purpose is to provide mutual support (monetary funds in US dollars) in the event that national financial systems encounter dollar liquidity problems.
• The CRA along with the New Development Bank are part of the BRICS framework that is aimed at maintaining financial stability in the BRICS countries.
• Total committed resources of the CRA are 100 billion US dollars, with individual commitments- China (41 billion), Brazil (18 billion), Russia (18 billion), India (18 billion) and South Africa (5 billion).
• It will come into force on 30 July 2015.
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