New Zealand Joins China Led Investment Bank

New Zealand has agreed to become a founding member of the Chinese-led Asian Infrastructure Investment Bank and will invest NZ$125 million (US$87.2 million) in capital over five years, the government announced Monday.

The AIIB, aimed at addressing the infrastructure gap in Asia, will have initial capital of close to US$100 billion (NZ$139 billion) and New Zealand’s contribution is proportionate to its economic size.

“Increased infrastructure investment will enhance the Asian region’s growth and that will be good for New Zealand,” Finance Minister Bill English said in a joint statement with Foreign Minister Murray McCully.

“This new bank will be a welcome addition to existing institutions and it stands to make a significant contribution to infrastructure in the region,” he said.

The formal signing ceremony will take place in Beijing later in the month and the AIIB is expected to begin operating before the end of the year, according to McCully.

via Mainichi

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza