Japan FinMin Wary of Joining China Led Bank

Finance Minister Taro Aso expressed wariness Tuesday about Japan joining a new Chinese-led Asian development bank, backtracking on more positive comments made last week.

Japan “is very cautious about participation,” Aso told a press conference. His comment compares with his remark last Friday that “there is a possibility of…discussing” how the bank is going to operate, once certain conditions are met.

But he did not rule out the possibility of the U.S. and Japan-led Asian Development Bank cooperating with the Asian Infrastructure Investment Bank.

“It is most desirable for (the ADB and AIIB) to work together on infrastructure,” Aso said, citing expanding demand for infrastructure in Asia. “But it won’t happen easily if their rules are totally different.”

The Wall Street Journal recently reported that Washington is proposing the AIIB work in a partnership with U.S.-backed development institutions, such as the World Bank.

Tokyo has called for transparency in the AIIB’s operations such as screening for sound loans.

Unless such issues are cleared, “it would be difficult” for Japan to join the new infrastructure bank, Aso said Tuesday.

China has said a March 31 deadline for accepting the AIIB’s founding members.

via Mainichi

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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