On Thursday, the BRICS countries, including South Africa, announced they will create a $100 billion currency reserves pool to safeguard against “unintended negative spillovers” from unconventional monetary policies in developed economies, reports Scotts Rose for Bloomberg.
“The policy options in response to such typical balance-of-payments difficulties include increasing interest rates or devaluing currencies,” Chinese Vice Finance Minister Zhu Guangyao said in the article.
Guggenheim BRIC ETF
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Max Chen contributed to this article.