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Asian Infrastructure Investment Bank (AIIB)
China has set up Asian Infrastructure Investment Bank (AIIB) in October 2014 with the participation of 21 countries including Nepal. AIIB is primarily for providing funding to the Asian energy, transport and infrastructure projects. Some people said that AIIB was the rival to ‘The World Bank’ set up by the US.
The US administration had successfully kept away Australia, Japan and South Korea from joining the bank. Initially, most of the European countries had stayed away from joining the bank. But once the UK joined the AIIB, other European countries lined up to join it. France, Germany and Italy decided to join the bank. Spain might follow the suit soon.
The US was not happy with the European countries joining the AIIB. The US administration had even issued its rebuke to the UK over its decision on joining the bank.
The capital of the AIIB was US$ 50 billions. China subscribes $ 25 billions whereas other countries joining it will subscribe the rest of the capital. China is determined to lead the world in the financial sector, too. It has been already the powerhouse of manufacturing. Its economy has been the second largest in the world. It has created millions of millionaires and hundreds of billionaires.
China has been trying to make its currency alternative to the US dollar for the world trade and transactions. Most of the countries trading with China have started off using Yuan for the bilateral trade with China. It has made the trade efficient and cost effective. Yuan has been gaining strength.
US lawmakers had been charging China with keeping the value of its currency deliberately low for having the trade advantage. China denied the charge.
