BRICS mulling over forex reserve pool

LOS CABOS, Mexico - BRICS countries are considering the establishment of a foreign-exchange reserve pool and currency-swap arrangement as their leaders meet ahead of the Group of 20 summit in Mexico.

President Hu Jintao of China joined his counterparts from the other BRICS nations -- Brazil, Russia, India and South Africa -- in a morning announcement.

According to the Chinese foreign ministry, the leaders discussed both the currency swap and foreign-exchange reserve pool ideas and tasked their finance ministers and central bank chiefs to implement them, the ministry said without elaborating.

The five leaders also talked about BRICS’ participation in increasing resources for the International Monetary Fund.

Hu said the members of the G20 -- the world's 20 major industrialized and developing countries -- should encourage and support euro-currency nations by improving market confidence and other measures.

The BRICS leaders stressed that ensuring the IMF is well capitalized is conducive to helping resolve global economic and financial challenges. The five-nation bloc is willing to contribute to those goals, the Chinese ministry said.

The leaders also urged the IMF to carry out promised reforms of its quota and governance systems.