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

What is the News?

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).

Click Here to Read about BRICS

 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.