France and Germany Join UK in China Lead Asian Bank Membership

France and Germany are to join the UK in becoming members of a Chinese-led Asian development bank.
The finance ministries of both countries confirmed on Tuesday that they would be applying for membership of the Asian Infrastructure Investment Bank (AIIB).

Last week, the US issued a rare rebuke to the UK over its decision to become a member of the AIIB.
The US considers the AIIB a rival to the Western-dominated World Bank.

The UK was the first Western economy to apply for membership of the bank.

But German finance minister Wolfgang Schaeuble confirmed on Tuesday that his country would also be applying for membership.

France’s finance ministry confirmed it would be joining the bank. It is believed Italy also intends to join.

The US has questioned the governance standards at the new institution, which is seen as spreading Chinese “soft power”.

The AIIB, which was created in October by 21 countries, led by China, will fund Asian energy, transport and infrastructure projects.

When asked about the US rebuke last week, a spokesman for Prime Minister David Cameron said: “There will be times when we take a different approach.”

via BBC

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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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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