BRICS agree to add money to IMF’s firewall

City A.M. Reporter
THE FIVE BRICS emerging economies have agreed to contribute to the International Monetary Fund and to explore currency swaps as part of efforts to promote global stability.

Leaders of developing world powers Brazil, Russia, India, China and South Africa met on the margins of the G20 summit in Los Cabos, Mexico, and “agreed to enhance their own contributions to the IMF”, they said.

The group did not say how much cash they would offer the IMF, which is seeking a $430bn infusion of funds, but underscored that the monies would came with conditions on how they were used and were linked to reforms that would five the developing world more say at the IMF.

“These new contributions are being made in anticipation that all the reforms agreed upon in 2010 will be fully implemented in a timely manner, including a comprehensive reform of voting power and reform of quota shares,” the countries said.

The five leaders also “discussed swap arrangements among national currencies as well as reserve pooling”.