Connect with us

South Asia

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

Published

on

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

Advertisement
Advertisement

Facebook

FEATURED

INDIAN-ARMY INDIAN-ARMY
Asia Pacific2 hours ago

Indian Army Has Deployed Additional 100,000 Troops Near The LAC – Top Chinese General

Despite the sixth round of Corps Commander level meeting between India and China which failed to provide any significant breakthrough,...

F18-India-Deal F18-India-Deal
Featured2 hours ago

NATO Commitment Forces Germany To Acquire F-18 Super Hornets & Reduce Number Of Typhoons

German President Frank-Walter Steinmeier is looking to procure the new Eurofighter Typhoons and F-18 Super Hornets to bridge the gap...

INDIA-CHINA INDIA-CHINA
Expert Reviews4 hours ago

‘Hot Winters’ Ahead – China Says PLA Needs To Teach A Harsh Lesson To ‘Insincere’ India – Analysis

The portents of war between China and India seem to be getting more and more darker by every passing day....

SAAB-GRIPEN SAAB-GRIPEN
Featured10 hours ago

SAAB Delivers Gripen-E Jets To Brazil; Offers ‘Exceptional Deal’ To The Indian Air Force

With India’s new FDI model under the new indigenization drive, SAAB has seen it as a lucrative offer and is...

F-35-INDIA F-35-INDIA
Europe11 hours ago

After Rafale Jets, This Air Force Wants Stealth F-35s That Was Once Meant For Turkey?

While some recent reports indicated that with the arrival of F-35s, UAE cold shed some of its F-16s and sell...

j20-vs-tejas j20-vs-tejas
Asia Pacific12 hours ago

Taiwanese Expert Says ‘Bathrooms Best Place To Hide’ During Chinese Air Raids, Missile Attack

As tensions between China and Taiwan are only increasing day by day, former Ministry of Defense advisor Sung Chao-wen on...

SU-30-MKI SU-30-MKI
Featured15 hours ago

Indian SU-30 MKI Jets Loaded With BrahMos Missiles Practice Hitting Chinese Assets Far Away From Ladakh

Soaring tensions between India and China in Ladakh has seen both the sides deploying thousands of troops, heavy artillery and...

China-and-India China-and-India
Asia Pacific16 hours ago

India-China War Highly Unlikely; Beijing Only Testing Indian Resilience – Experts

India-China War: The joint statement following the meeting said that ministers had a “frank and constructive discussion on the developments...

imran-khan imran-khan
Featured16 hours ago

India, Pakistan Clash At UNGA – Indian Diplomat Walks Out As Imran Khan Goes All-Out Over Kashmir

India strongly reacted to Pakistan PM Imran Khan's speech at UNGA calling it a 'diplomatic low'. India's envoy to the...

J-10VSF-16 J-10VSF-16
Featured1 day ago

Next US Intervention In Taiwan & There Would Be No Taiwan – China

Amid suggestions for the United States to deploy its troops to Taiwan, Chinese military experts have warned that any such...

Advertisement