Russia will allocate money from its federal budget to make the fee to BRICS Bank, and money from international reserves to make the fee to BRICS’ currency reserve pool, Russia’s Deputy Finance Minister Sergei Storchak said on Friday.
“Finance ministries are forming the capital of BRICS bank,” he said. “Those would be monies from the federal budget, the moneys from taxpayers. Those would be the federal budget’s expenses.”
As for the currency reserve pool, it is being formed differently. “Thus, it is being called a virtual pool,” Storchak said.
“We are speaking about the agreements with central banks that we are forming a legal base, where we would be able to make swap operations, if necessary. Against national currencies, the pool’s participants will use dollars,” the deputy finance minister said.
On Thursday, Russia’s President Vladimir Putin called an important economic achievement the organization of the Bank, where the initial capital would be $50 billion.
On Thursday, Russia, Brazil and India announced they would make payments of $18 billion each into BRICS’ currency reserve pool, China would make a payment of $41 billion, and South Africa - five billion dollars. Thus, the total currency reserve will make $100 billion.