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Joint forex action not discussed, says India.

The leaders of the five top emerging market economies agreed on Tuesday on a landmark deal to create a $100 billion development bank and a reserves fund of the same size to challenge Western dominance over global finances.

The five Brics countries have not discussed coordinated forex intervention in global markets, but it is an idea "worth thinking about," India's central bank deputy governor Urjit Patel told Reuters on Tuesday.

The leaders of the five top emerging market economies agreed on Tuesday on a landmark deal to create a $100 billion development bank and a reserves fund of the same size to challenge Western dominance over global finances.

While the Brics nations - Brazil, Russia, India, China and South Africa - have begun to flex their muscles on the world economic stage, they have yet to achieve the policy coordination of leading industrialised nations in the G7.

Asked if the Brics could at some point jointly intervene in forex markets to ease turbulence, Patel said it "is a point worth thinking about, but it has not been discussed." Patel said the new fund, known as the Contingent Reserves Arrangement or CRA, could include non-Brics nations. The CRA, designed to help members deal with balance of payment problems, will "provide an extra bit of comfort" to emerging nations, he added.

The five Brics countries have not discussed coordinated forex intervention in global markets, but it is an idea "worth thinking about," India's central bank deputy governor Urjit Patel told Reuters on Tuesday.

The leaders of the five top emerging market economies agreed on Tuesday on a landmark deal to create a $100 billion development bank and a reserves fund of the same size to challenge Western dominance over global finances.

While the Brics nations - Brazil, Russia, India, China and South Africa - have begun to flex their muscles on the world economic stage, they have yet to achieve the policy coordination of leading industrialised nations in the G7.

Asked if the Brics could at some point jointly intervene in forex markets to ease turbulence, Patel said it "is a point worth thinking about, but it has not been discussed." Patel said the new fund, known as the Contingent Reserves Arrangement or CRA, could include non-Brics nations. The CRA, designed to help members deal with balance of payment problems, will "provide an extra bit of comfort" to emerging nations, he added.

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Publication:Khaleej Times (Dubai, United Arab Emirates)
Geographic Code:9INDI
Date:Jul 17, 2014
Words:410
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