Apr. 4 – On March 26, the BRICS group of emerging nations (which consists of Brazil, Russia, India, China and South Africa) passed the Cooperative Framework for BRICS in Trade and Investment (hereinafter referred to as the “Framework”) during the Third Economic and Trade Ministerial Meeting in Durban, South Africa.
The Framework intends to promote cooperation between the BRICS countries in trade, investment and economy. It will also encourage the BRICS to develop intra-bloc trade and investment connections to foster complementary economic systems.
The cooperation focuses specifically on the following areas:
- Cooperation and coordination on multilateral developments;
- Promotion and convenience in trade and investment;
- Cooperation in technological innovation;
- Cooperation on developing small and medium enterprises;
- Cooperation on intellectual property; and
- Cooperation on infrastructure and industrial development.
On the same day, the People’s Bank of China (PBOC) and Brazil’s Central Bank signed a Bilateral Currency Exchange Agreement for RMB190 billion (which converts to 60 billion Brazil Reals, or US$30 million) to enhance bilateral financial cooperation and to facilitate greater trade relations between the two countries. The agreement will be valid for three years with the possibility of an extension if agreed upon by both sides.
Furthermore, the chief of China’s central bank, Zhou Xiaochuan, and the chief of the South African Reserve Bank (SARB), Gill Marcus, signed an entrusted investment agreement regarding the PBOC investing in the securities market in Chinese banks on behalf of the SARB.
