* BRICS to boost funds to IMF, but want reforms
* Swap, reserve pooling of currencies to be studied
By Lesley Wroughton
LOS CABOS, Mexico, June 18 (Reuters) – The five BRICS
emerging economies said on Monday they agreed to enhance their
contributions to the International Monetary Fund and to explore
currency swaps as part of efforts to promote global financial
stability.
Leaders of developing world powers Brazil, Russia, India,
China and South Africa met on the margins of the G20 summit in
Los Cabos, Mexico, and “agreed to enhance their own
contributions to the IMF,” they said in a statement.
The group did not say how much cash they would offer the
IMF, which is seeking a $430 billion infusion of funds, but
underscored that the monies would came with conditions on how
they were used and were linked to reforms that would five the
developing world more say at the Washington-based fund.
“This is with the understanding that these resources will be
called upon only after existing resources … are substantially
utilized,” said the statement.
“These new contributions are being made in anticipation that
all the reforms agreed upon in 2010 will be fully implemented in
a timely manner, including a comprehensive reform of voting
power and reform of quota shares,” it added.
In another sign the big emerging economies were pushing for
more influence in the global financial system, and seeking wider
use of currencies other than the dollar and euro, the BRICS
statement said the five leaders had “discussed swap arrangements
among national currencies as well as reserve pooling.”
BRICS finance ministers and central bank governors were
instructed to study the swaps and pooling arrangements and
relevant internal legal issues and report back to the leaders at
next year’s BRICS summit in South Africa, the statement said.
