The 'Fortaleza Declaration' of 2014 is most famous in BRICS history for the creation of which of the following?

Question

The 'Fortaleza Declaration' of 2014 is most famous in BRICS history for the creation of which of the following?

1. A. A common BRICS currency called 'R5'
2. B. The Contingent Reserve Arrangement (CRA) (Correct answer)
3. C. The BRICS Space Agency
4. D. A permanent BRICS Secretariat in Brazil

Correct Answer

Option B — The Contingent Reserve Arrangement (CRA)

Detailed Solution & Explanation

The correct answer is The Contingent Reserve Arrangement.

Key Points

• The Fortaleza Declaration was issued at the 6th BRICS Summit held in Fortaleza, Brazil, in 2014.
• It established the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) — the grouping's two financial pillars.
• BRICS has never created a common currency, a space agency or a permanent secretariat, so the other options are inventions.

Additional Information

• The CRA is a $100 billion currency-swap facility to help members facing short-term balance-of-payments pressure — effectively a BRICS alternative to IMF emergency support.
• The NDB was capitalised at $100 billion, is headquartered in Shanghai, and had K. V. Kamath of India as its first President.
• Contributions to the CRA are weighted: China $41 bn, Brazil, India and Russia $18 bn each, and South Africa $5 bn.
• BRICS expanded from 1 January 2024 to admit Egypt, Ethiopia, Iran and the UAE, with Indonesia joining subsequently.