BRICS Financial Instruments and Their Role in the Global Network

Countries leverage their domestic currency reserves and enter into bilateral or regional agreements with other nations to protect themselves against balance of payments deficits and foreign currency shortages. In this context, the BRICS Contingent Reserve Arrangement (CRA) stands out as a key cross-regional mechanism in the global financial network. In terms of size, it ranks as the third-largest regional reserve arrangement in the world, providing liquidity support and enhancing financial stability for member countries.