BRICS Nations Sign Pact for Local Currency Facility

2012-04-02

In an initiative to promote trade in local currencies, the BRICS nations in the fourth BRICS Summit on March 29 signed two agreements, “Master Agreement on Extending Credit Facility in Local Currency” and “the Multilateral Letter of Credit Confirmation Facility Agreement”, to provide line of credit to the business community and decided to examine the possibility of setting up a development bank on lines of multilateral lending agencies.
The agreements were signed by officials of five countries -- Brazil, Russia, India, China and South Africa -- at the fourth BRICS summit in New Delhi, India. "The agreements signed today by development banks of BRICS countries will boost trade by offering credit in our local currency," Prime Minister Manmohan Singh said in a media statement after the meeting.