“The Contingent Reserve Arrangement is being established to respond to short-term balance of payment pressures. Further it will serve as a precautionary measure to help the BRICS countries forestall short- term liquidity pressures, provide mutual support and further strengthen the global financial safety net,” said Minister for Performance, Monitoring and Evaluation in the Presidency Jeff Radebe on Thursday.

He was briefing media on the Cabinet meeting which was held in Cape Town this week.

In July last year Cabinet welcomed the agreement to launch the New Development Bank (NDB) at the sixth BRICS Summit in Brazil as well as to establish the bank’s regional office in Johannesburg.

The five members of the group – Brazil, Russia, India, China and South Africa (BRICS) – laid out the designs of the bank and the CRA in a declaration released following their sixth summit.

Source: South African Government News Agency
Author: South African Government News Agency
Available: http://www.sanews.gov.za/south-africa/brics-cra-be-tabled-parliament