UPDATE 3-BRICS to commit $100 billion to FX fund, completion a way off

Thu Sep 5, 2013 2:08pm EDT
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* China says will contribute lion's share

* Fund to be announced at G20 summit

* Officials warn much still work to do before operational

* Fund could be year or more away

* India urged to tackle external deficits

By Lidia Kelly and Alessandra Prentice

ST. PETERSBURG, Russia, Sept 5 (Reuters) - The BRICS emerging economies will set up a $100 billion fund to steady currency markets, Russia's Vladimir Putin said on Thursday, but it looks unlikely to be in place soon enough to temper the effects of an expected pullback of U.S. monetary stimulus.

China, holder of the world's largest foreign exchange reserves, will contribute the bulk of the currency pool. But officials said it would not be functional for some time yet.

Cheap dollars that fueled a boom in Brazil, Russia, India, China and South Africa over the past decade have turned tail since Ben Bernanke, chairman of the Federal Reserve, warned in May of a 'taper' in the U.S. bond-buying scheme.   Continued...