Belt and Road financing welcomes local currencies, says PBOC chief

Updated 2017-05-05 15:01:30 China Daily
People's Bank of China Governor Zhou Xiaochuan speaks at a news conference in Beijing, March 10, 2017.

People's Bank of China Governor Zhou Xiaochuan speaks at a news conference in Beijing, March 10, 2017.

China's central bank governor Zhou Xiaochuan said using local currencies for Belt and Road investments and financing will help reduce exchange rate fluctuations and ensure financial stability in those nations.

Countries along the Belt and Road routes should promote financial connectivity to optimize resource allocation and provide a long-term and reliable backing for regional constructions, Zhou wrote in an article published on Thursday in the central bank's biweekly magazine China Finance.

"Investment and financing shouldn't be understood as one-way support. The initiative is to build a common community with risk and benefit sharing through extensive consultation and joint contribution," he wrote.

The infrastructural projects should be market oriented and ensure sustainability, the governor of the People's Bank of China (PBOC) noted.

"China has explored a way of development financing." Zhou cited the China Development Bank as a good example in integrating resources, bridging the state with market and operating independently from government subsidy.

There's huge financing demand in the infrastructural construction along the Belt and Road, which is beyond one country's capability and has to rely on market force pooling capital across the world, Zhou wrote.

Concessionary loans require government funding, and are also likely to cause market distortion and dependency mentality, Zhou said.

The Belt and Road Initiative, proposed by President Xi Jinping in 2013, has won support from more than 100 countries and international organizations, over 40 of whom have signed cooperation agreements with China.

The country will host the Belt and Road Forum for International Cooperation on May 14-15 in Beijing, enabling participants to exchange views on the future development of the initiative.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58September 23 2017 13:47:04

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16September 23 2017 13:47:04

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18September 23 2017 13:47:04

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords