Wednesday, January 20, 2016

China Daily - China Officially Launches AIIB (Asian Infrastructure Investment Bank)

China Daily runs a couple of articles on the launching of the new AIIB. This bank along with the new BRICS Development Bank bring some new lenders into the global markets alongside the existing World Bank and the IMF. Below are a few quotes from one article. The other article is a series of infographs explaining the AIIB. 


Chinese President Xi calls AIIB's launch 'historical moment'

"The Asia Infrastructure Investment Bank (AIIBlaunched its inaugural ceremony on Saturday morning at the Diaoyutai State   Guesthouse with President Xi Jinping attending the event."

. . . . . 

"The AIIB will work together with multilateral development banks including the World Bank and the Asian         Development Bank to facilitate Asian infrastructure construction and sustainable developmentLou said."

Infographics: Asian Infrastructure Investment Bank

My added comments: We have not really touched on the BRICS much lately. They are pretty much just moving forward with their scheduled new financial institutions. With the inclusion of the Yuan into the SDR Currency Basket at the IMF and the US approval of the 2010 IMF reforms, the issue of China and the BRICS moving away from the IMF and World Bank has died down.

At the recent Bretton Woods Committee webinar ,Yu Yongding gave a good summary of how things are going in China. He and Dr. Warren Coats both agreed that the inclusion of the Yuan in the SDR currency basket has improved China's outlook on the IMF.

 It seems that the focus now for China is containing the internal market problems they are dealing with and deciding on how much to support the Yuan currency. The year 2016 has started off in a very volatile manner and so until markets calm down I suspect full attention will be directed to the market volatility problems

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