Sunday, January 17, 2021

AIIB Currency To Minimise Cross-Border Investment Risks in India, Pakistan

China-led Asian Infrastructure Investment Bank (AIIB) is planning to launch a local currency financing in India and some other Asian nations. AIIB backed currency can minimise the cross-border investment risks caused by exchange rate fluctuations.

The AIIB President Jin Liqun said: “the first group of countries to have this new service could include India, Indonesia, and Pakistan”.

The local currency used for cross-border financing is a service usually provided by multilateral development organisations to hedge against foreign exchange-rate risks resulting from the settlement in US dollars.

Mr. Jin said that there is a concern for sustainable infrastructure because of a rise in debt financing costs as a result of the rapid increase in interest rates and trade tensions causing cross-border investment uncertainties.

The AIIB, which provides multilateral regional financing and investment platform for infrastructure development, decided to expand project investment to USD four billion in 2019 in Asia and other countries.

A recent AIIB report said: “Recent currency volatility in emerging markets is a cause for concern. It is likely to lead to delays in projects, weakening the outlook for the project pipeline.”

With authorised capital of USD 100 billion, China is the largest shareholder with 26.06 per cent voting shares in the AIIB. While India is the second largest shareholder with 7.5 percent followed by Russia with 5.93 percent and Germany with 4.5 percent. The bank has already given close to a USD billion investment loans towards various projects in India.

More News at EurAsian Times


Declassified Report Shows How US Wants To Co-Opt India Into Its Anti-China Strategy ‘For Next 50 Years’

The US has declassified a confidential report highlighting the importance of India in the Indo-Pacific and how Washington plans to decimate China in the...

Are Hypersonic Weapons Really ‘Super-Dupers’ And The Next Big Thing In The Global Arms Race?

Are hypersonic weapons really the next big thing in the global arms race? Two American scientists have busted the 'myth' surrounding hypersonic weapons that...

Greek Parliament Approves Rafale Fighter Jet Deal From France

The much-speculated deal between France and Greece for Rafale fighter jets is expected to be signed soon. The Greek lawmakers have given a nod...

Why Should Pakistan Be ‘Very Worried’ By India’s New Role At The UN Security Council?

India, which has begun its stint as a non-permanent member of the UN Security Council for 2021-22, will be chairing three key UN sanctions...

Indian Air Force Chief Compares LCA Tejas With Pakistani / Chinese JF-17 Thunder

Drawing a comparison between India's LCA Mk1A ‘Tejas’ and Pakistan's JF-17 fighters, Indian Air Chief Marshal RKS Bhadauria said that the Indian jets are...