BRICS nations pledge to deepen financial cooperation, boost macroeconomic policy

The Finance Ministers and Central Bank Governors of the BRICS nations (Brazil, Russia, India, China, and South Africa) have published a joint statement during a virtual conference on Monday agreeing to increase financial collaboration and boost macroeconomic policy coordination. The summit urged the global community to expand partnerships, highlighting that macro-policy coordination is essential in guiding the world economy out of crisis and constructing a robust, sustainable, balanced, and inclusive post-pandemic economic recovery. 

According to a Xinhua report, the conference, which was co-chaired by China's central bank governor Yi Gang and finance minister Liu Kun, covered subjects such as enhancing the Contingent Reserve Arrangement and transition finance cooperation, among other things. Yi appreciated the BRICS nations' joint efforts in achieving significant progress in financial cooperation during the summit. 

BRICS nations financial cooperation

It also reaffirmed the BRICS nations' commitment to a robust and effective Global Financial Safety Net, with a quota-based and sufficiently resourced IMF at its center, and called for the 16th General Review of Quotas to be completed on time and successfully. 

The summit also emphasised the significance of transition finance in promoting an orderly green and low-carbon transition, as well as the vital role of sustainable finance in the recovery of the world economy. 

In addition to this, under the chairmanship of BRICS China, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman attended the 2nd BRICS Finance Ministers and Central Bank Governors (FMCBG) meeting online. 

It is pertinent to note that the BRICS Joint Finance Ministers and Central Bank Governors Statement, Infrastructure Investments, the New Development Bank, and the BRICS Think Tank Network for Finance were among the topics discussed, ANI reported.  

BRICS, according to Sitharaman, should continue to serve as a framework for debate and the exchange of experiences, issues, and ideas in order to create a sustainable and inclusive growth path. The finance minister further stated that India's economic development will continue to be supported by fiscal expenditure as well as an investment push, giving the economy a boost based on the concept of macroeconomic growth complemented by all-inclusive welfare at the micro-level. 

Apart from this, Dr. S. Jaishankar, the External Affairs Minister, attended the BRICS Ministers of Foreign Affairs/International Relations conference through a video conference last month. 

(Image: Twitter/@FinMinIndia)