News Column

IMF to cooperate with BRICS in new currency swap deal

July 31, 2014

The International Monetary Fund is ready to cooperate with a group of five key emerging economies in an emergency currency swap deal, according to IMF head Christine Lagarde.

Speaking to a group of reporters earlier in the week, Lagarde welcomed the Contingency Reserve Agreement that Brazil, Russia, India, China and South Africa -- collectively known as BRICS -- recently agreed to establish, saying the bloc "is planning on cooperating with the IMF."

"There has to be cooperation" between various players when a new mechanism is established, Lagarde said, referring to the importance of strengthening the international safety net for a further stabilized financial system.

She indicated that participants in the new mechanism can draw on the experience of the IMF in such fields as multilateral surveillance and spillover work.

The five countries agreed in July to set up a $100 billion mutual currency swap deal with a Brazilian government official saying the architects of the CRA tried to model it on the IMF's system.

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Source: Japan Economic Newswire

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