China advances development bank to help 10 Eurasian countries curb US dollar risks
President Xi Jinping raises urgency of a bank for the Shanghai Cooperation Organisation’s members, as Washington wields ‘extraterritorial power with the dollar’
A strong push on Monday to create a development bank serving 10 Eurasian countries, including China, would help insulate the group from increasingly risky US dollar-dominated trade while accelerating key infrastructure work, according to analysts.
Such a concessional lender – part of an idea that has long been put on hold – would serve China, Russia, India and seven other nations that have worked together since 2001 as the Shanghai Cooperation Organisation (SCO).
And an official statement later released by Xinhua in the evening said the SCO had “decided to establish a development bank and accelerate consultations on a series of issues related to the financial institution’s operation”.
Russian state media also reported that summit participants had decided to establish the bank.
“It will be a natural or a logical step forward,” said Victor Gao, vice-president of the Beijing-based Centre for China and Globalisation think tank. “I personally believe the momentum is on China’s side.”