ADVERTISEMENT

Chinese-led AIIB plans to launch local currency loans in India

Chinese-led AIIB plans to launch local currency loans in India

Published
Hot News
1 min read
Jin Liqun. (File Photo: IANS)
By Gaurav Sharma
Beijing, Jan 30 (IANS) Chinese-led Asian Infrastructure Investment Bank (AIIB) might launch local currency financing in some Asian countries, including its top borrower India, later this year.
The move announced by bank's President Jin Liqun aims at reducing cross-border investment risks caused by exchange-rate fluctuations.
Besides India, which is also the second largest stakeholder in the multilateral bank, Pakistan and Indonesia are other countries where the service will be made available.
The service is used to hedge against foreign exchange-rate risks arising from the settlement in US dollars. The risk grew when the greenback became stronger against currencies in many emerging economies last year.
Rising debt financing costs from high global interest rates and cross-border investment uncertainties as a result of trade tensions have raised concerns about sustainable infrastructure financing, Jin said.
"Recent currency volatility in emerging markets is a cause for concern," said an AIIB report released on Tuesday. "It is likely to lead to delays in projects, weakening the outlook for the project pipeline."
"There is an urgent need to redouble efforts to mobilize private capital," Jangping Thia, principal economist of the AIIB Strategy, Policy and Budget Department, was quoted as saying by China Daily.
The Chinese-led AIIB has 93 approved members worldwide.
(Gaurav Sharma can be contacted at sharmagaurav71@gmail.com)
--IANS
gsh/prs

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(This story was auto-published from a syndicated feed. No part of the story has been edited by The Quint.)

(The Quint is available on Telegram. For handpicked stories every day, subscribe to us on Telegram)

We'll get through this! Meanwhile, here's all you need to know about the Coronavirus outbreak to keep yourself safe, informed, and updated.

Liked this story? We'll send you more. Subscribe to The Quint's newsletter and get selected stories delivered to your inbox every day. Click to get started.

The Quint is available on Telegram & WhatsApp too, click to join.

ADVERTISEMENT
ADVERTISEMENT
Stay Updated

Subscribe To Our Daily Newsletter And Get News Delivered Straight To Your Inbox.

Join over 120,000 subscribers!
ADVERTISEMENT