The Treaty for the Establishment of the BRICS Contingent Reserve Arrangement signed by the five BRICS countries at the Fortaleza summit on 15 July 2014 came into force on 30 July 2015.
This mechanism is aimed at maintaining financial stability in the BRICS states. Every BRICS country can contribute and reserve a specific sum as insurance against emergencies that could be caused, among other things, by major capital drain.
The Contingent Reserve Arrangement will hold liquid capital totaling $100bn, with China contributing $41bn, Brazil, India and Russia $18bn each, and South Africa $5bn.
On 7 July 2015, the heads of the BRICS central banks signed an operating agreement in Moscow on the Contingent Reserve Arrangement, which specified central bank procedures within the Arrangement and defined the central banks' rights and obligations.
At its first meeting, the Board of Governors will approve and sign a number of technical documents regulating the functioning of the governing bodies.