In 2014, BRICS established the Contingent Reserve Arrangement, a $100 billion emergency fund that aims to help out countries with liquidity problems in their international reserves.
As Marco Fernandes, editor at Wenhua Zongheng International, points out, the alternative fund has immense potential to bail out Global South countries and prevent them from the restrictions imposed by the International Monetary Fund.
However, in an ironic twist, a large part of the BRICS fund depends on approval from the IMF. In an analysis published on the Valdai Discussion Club website, Fernandes argues that BRICS leaders need to take a political decision to remedy this situation.
