Moscow, July 7 (IANS): The chiefs of BRICS central banks have signed an operating agreement on the currency reserve pool, Russia’s central bank said on Tuesday.

The BRICS member-countries are Brazil, Russia, India, China and South Africa.

The signing ceremony took place in Moscow after the meeting of the finance ministers and heads of the central banks of BRICS countries ahead of the summit of the organisation in Ufa, TASS news agency reported citing a statement by the Russian central bank.

The operating agreement contains a detailed description of the procedures which are carried out by the central banks of BRICS states within the currency reserve pool, and defines their rights and duties.

The total amount of the currency reserve pool is $100 billion. The countries’ commitments are as follows: China $41 billion, Brazil $18 billion, Russia $18 billion, India $18 billion, and South Africa $5 billion

The representatives of BRICS signed an agreement on establishing a currency reserve pool in Brazil on July 15, 2014. The official name of the agreement and the pool is Contingent Reserve Arrangement (CRA).

The idea of the pool is to give the member states an opportunity to provide each other financial assistance in case one of the states has problems with dollar liquidity.

The pool is an insurance system aimed at maintaining financial stability in the member-states of the BRICS grouping.