Members of the global economic grouping known as BRICS - Brazil, Russia, India, China and South Africa - say they are considering providing funds through the International Monetary Fund or other financial institutions to help get growth in developed countries back on track. The BRICS countries on Thursday called for decisive action, but did not offer immediate and specific financial support.
For more than a week, speculation has been building about what the BRICS countries could do to help Europe stem its sovereign debt crisis. The possibility that emerging economies like China and Brazil -- with large foreign currency reserves -- could come to the euro zone's rescue has stirred much speculation among analysts over what these countries might do to help the global economy.
With more than $4 trillion in cash reserves, most of that owned by China, there has been talk of the BRICS economies investing in euro zone sovereign bonds.
Following a gathering of central bankers and finance ministers on Thursday, the BRICS countries issued a statement in which they seemed willing to act, although not on their own, and not just yet.
Zhou Xiaochuan is the Governor of the People's Bank of China.
[The] BRICS communique also expressed that we need to jointly consider a kind of support for these purposes [aiding the global economy], he said. But probably this needs a wider range of discussion, maybe G-7 [Group of Seven] G-20 [Group of 20] or [during] other occasions.
Chinese officials say Beijing will continue to give marginal support to Europe through its ongoing investments there and efforts to diversify its holdings in foreign currency reserves.
Nearly a third of China's foreign currency reserves are in euros. China says it wants to grow that investment and reduce its holdings in dollars. 1/2 12下一页尾页