Australia Will Join Chinese Investment Bank as Founding Member

June 24, 2015 Share Print 0

Australia has said it will join a China-led infrastructure bank as a founding member, contributing 930m Australian dollars ($718.5m; £455m) over five years.

The move will make Australia the sixth biggest shareholder of the Asian Infrastructure Investment Bank (AIIB).

More than 50 members have signed up to the lender, which is widely seen as a rival to the Western-led World Bank.

The US and Japan have refused to join, however.

Both countries have raised concerns over the bank’s standards of governance, while there are concerns in the US that the AIIB could be used by China to extend its political influence.

The Beijing-based lender will help finance construction of roads, ports, railways and other infrastructure projects in Asia. The UK, France, Germany and Iran are among its members.

via BBC

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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.