OREANDA-NEWS. April 10, 2013. Dr. Zhou Xiaochuan, Governor of the People’s Bank of China, and Mr. Lou Jiwei, Minister of Finance of China attended BRICS finance ministers and central bank governors’ meeting in Durban, South Africa. This meeting was held before the Fifth BRICS Summit.

At the meeting, the ministers and governors discussed the current economic, financial situations and future challenges faced by the BRICS countries and the world, and judged that the sovereign debt crisis is still the biggest risk for global economic growth. They talked about the uncertain impact of continuous quantitative easing monetary policy of developed economies, and noted that its spillover effect has intensified the difficulty and complexity of policy management for emerging economies. They called upon developed nations to take their due responsibilities, accelerate structural reform and regain growth. They also discussed the feasibility of establishing a Contingent Reserve Arrangement (CRA) and a New Development Bank, and agreed that BRICS countries should continue to strengthen economic policy coordination, and proceed with practical economic and financial cooperation.

Governor Zhou Xiaochuan provided an overview of the economic and financial situation in China. He emphasized that the BRICS countries should jointly set up a Contingent Reserve Arrangement (CRA), which will be a beneficial complement to the global financial safety net, conducive to the financial stability of BRICS countries and the world.

On the sideline of the meeting, Governor Zhou Xiaochuan and Governor Tombini of the Banco Central do Brasil (BCB) signed the Bilateral Local Currency Swap Agreement between PBC and BCB. In addition to this, Governor Zhou Xiaochuan signed an agreement with Governor Gill Marcus of South African Reserve Bank (SARB) to enable the SARB to invest via the PBC in China’s interbank bond market. It is an important step in the bilateral cooperation between China and the two countries, which will help deepen monetary and financial cooperation among BRICS countries, and facilitate the development of comprehensive strategic partnership between China and the two countries.