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AIIB: U.S. Dollar Will Be Used as Primary Settlement Currency

Well-known Chinese news site Sina recently reported that the Asian Infrastructure Investment Bank (AIIB) officially opened for business on January 16, 2016. In a media interview, the newly appointed AIIB President, Jin Liqun, commented on the Bank’s mission, organizational structure, and operational tasks. The interview touched a few sensitive topics such as the concern that the AIIB might become China’s “tool for foreign relations.” Jin suggested that there is “no need” to avoid acknowledging China’s significant role in the AIIB, which is just like the United States playing a special role in the IMF and the World Bank. Jin also said that the U.S. dollar will be used as the “primary currency” for loans and settlements. He explained that the U.S. dollar is still the “main currency in global trade” and it’s easy to exchange and to use when conducting banking business. However, he said other currencies from China, Japan, and Europe can “also play a role” upon “customers’ requests.”
Source: Sina, January 16, 2016