Leaders from Brazil, Russia, India, China and South Africa approved a $100 billion fund to combat currency crises, while failing to reach agreement on financing for a development bank.

China may provide the bulk of the funding for the foreign- currency pool, Russian Finance Minister Anton Siluanov said in an interview today in Durban, South Africa. Negotiators are considering proposals for China to contribute $41 billion, Brazil, Russia and India to provide $18 billion each and South Africa $5 billion, he said.

"The establishment of a self-managed contingent reserve arrangement would have a positive precautionary effect, help BRICS countries forestall short-term liquidity pressures, provide mutual support and further strengthen financial stability," South African President Jacob Zuma said after leaders from the five nations met in Durban.

The BRICS countries, which have 43 percent of the world's population and total foreign-currency reserves of $4.4 trillion, are seeking greater financial sway to match their rising economic power.

Emerging markets from Brazil to Turkey have been hit by currency swings as interest rates near zero in the U.S., Japanand Europe fueled foreign investors' appetite for higher- yielding assets. Brazil's real has gained 1.9 percent against the dollar this year, while South Africa's rand has slumped 8.8 percent.

Officials didn't provide details today on how the currency fund will operate. In October, Brazilian Finance Minister Guido Mantega said the pool will be modeled on the Chiang Mai Initiative, which gives Japan, China, South Korea and 10 southeast Asian nations access to $240 billion of emergency liquidity to shield the region from global financial shocks.

While leaders agreed that a development bank was "feasible and viable," they failed to provide detail on how it would be funded. The BRICS nations have been studying the viability of the bank for a year. In the run-up to the summit, officials from Brazil and Russia indicated each country could contribute $10 billion.

"We have reached broad consensus," said Chinese President Xi Jinping said at the summit closing. The agreement on the banks and currency reserve arrangement "will further unlock potential cooperation. BRICS cooperation will help stabilize global economic governance."

David Fuller's view This is an inevitable development as many of these so-called developing countries grow in power and influence, particularly when most of the Western economies are struggling with slow GDP growth and large debts.

Theoretically, it is also a good idea, subject to governance. China will contribute the most money and therefore have the greatest influence. However, different countries will inevitably have differing views on occasion, ensuring that 'the devil is in the detail'.