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.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.