Brics nations launch $100bn fund

<p>A new $100 billion fund has been launched by the Brics nations.</p>

Brazil, Russia, India, China and South Africa (Brics) have confirmed the formation of a new $100 billion (£65 billion) reserves fund.

The move was announced by Russian president Vladimir Putin during the G20 summit in St Petersburg earlier this week, who described the project as being at its final stage.

Mr Putin revealed that the fund has been set up to guard against financial shocks, adding: "Its capital volume has been agreed at $100 billion."

China has agreed that it will contribute $41 billion to the pool, while $5 billion will come from South Africa and Brazil, India and Russia will each be putting in $18 billion.

Brics nations are expected to use the foundation of the fund to tackle any potential volatile movements in their currencies.

The Indian rupee has hit a new low against the US dollar this summer, but this week saw it rebound on the back of new measures unveiled by the country's central bank.

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