The International Monetary Fund added $456 billion to its war chest as 12 more nations, including the BRICS, pledged new money to protect the global economy from the impact of the Eurozone debt crisis at the ongoing G20 meeting in Los Cabos, Mexico.
China led the nations in boosting the firewall with a contribution of $43 billion. India, Russia and Brazil agreed to provide $10 billion each. Another BRICS member South Africa offered $2 billion, according to IMF. G20 host Mexico also offered $10 billion.
IMF Managing Director Christine Lagarde welcomed the additional pledge to increase the IMF resources.
The new contributions will only be used as "a second line of defense," Lagarde said at the G20 meeting. In April, G20 nations agreed to boost the IMF firewall by $430 billion.
The BRICS group, consisting of Brazil, Russia, India, China and South Africa, reportedly said Monday that they will study currency swaps and reserve-pooling. The proposal is largely a precautionary measure, reports said quoting He Jianxiong, an official with the People's Bank of China.
On Monday, the G20 urged more efforts by Europe to contain the debt crisis. Eurozone members should "take all necessary policy measures" to safeguard the stability of the single currency bloc, reports said citing the G20 draft communique, to be released at the end of the G20 meeting on Tuesday.
According to the communique, G20 leaders have prepared a coordinated global action plan to deal with the Eurozone crisis and slowing global growth. The plan reportedly aims to boost economic growth and job creation.
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