India hosts meeting of “BRICS finance and central bank Meeting” 2021

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India has virtually hosted the BRICS Finance and the central bank meeting.

BRICS Finance and the central bank Meeting:

  • It was the first meeting on the BRICS Financial Cooperation held under India’s Chair.
  • The meeting was co-chaired by the Secretary, Department of economic affairs, Ministry of finance, and Deputy governor, Reserve Bank of India(RBI).
  • Other participants in the meeting included BRICS finance and central bank deputies of Brazil, Russia, China and South Africa.

Issues discussed during the meeting:

  • During the meeting, India has discussed issues such as:
    1. Global Economic Outlook and Response to COVID-19
    2. Social Infrastructure Financing and Use of Digital Technologies
    3. New Development Bank(NDB) Activities
    4. Fintech for SME and Financial Inclusion,
    5. BRICS Contingent Reserve Arrangement (CRA).

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 BRICS chairmanship for 2021:

  • India has assumed the chairmanship for BRICS in 2021. It is the year in which BRICS is celebrating its 15th anniversary.
  • Theme: BRICS@15: Intra-BRICS Cooperation

BRICS Contingent Reserve Arrangement(CRA)

  • Established in: It was established in 2015 as a part of the Fortaleza Declaration at the Sixth BRICS summit.
  • Aim: It aims to provide short-term liquidity support to the members through currency swaps. It will help to mitigate the Balance of Payment(BOP) crisis situations in case such a situation arises.
  • Other objectives:
    • It will help member countries to forestall short-term liquidity pressures,
    • Moreover, it will provide mutual support and further strengthen financial stability.
    • It would also contribute to strengthening the global financial safety net and complement existing international arrangements (from IMF) as an additional line of defence.

Source: PIB

[Answered] “BRICS is becoming a magnet for many emerging economies.” In light of this discuss the significance of BRICS as a pillar of the emerging, fairer poly-centric world order.

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