BRICS Contigent Reserve Arrangement operational: Arun Jaitley

Finance Minister Arun Jaitley has said that BRICS' "Contingent reserve arrangement" (CRA) is now operational to address any short-term balance of payments pressures the grouping's member nations face. CRA, established in 2015 by BRICS member nations Brazil, Russia, India, China and South Africa, is a framework for the provision of support through liquidity and precautionary instruments in response to actual or potential short-term balance of payments pressures. 

In his address to the meeting of BRICS Finance Ministers and heads of central banks, Jaitley



announced that the central banks of the grouping's members are "fully ready to carry out" the transactions. Jaitley and his BRICS counterparts are in Washington to attend the annual fall meeting of the International Monetary Fund and the World Bank.

During yesterday's meeting, BRICS ministers welcomed the proposal to formalise the setting up of a network of central banks research units that will support the working of CRA. Jaitley also extended invitation to attend BRICS Finance Ministers and Central Bank Governors meeting to be held in Goa later this month.