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Business / Economy

AIIB China's attempt to stabilize international finance

(Xinhua) Updated: 2015-04-17 10:06

LONDON - The development of the Asian Infrastructure Investment Bank (AIIB) is China's major move to develop an international institution which could stabilize the international financial markets, a British economist has said.

With the growth of renminbi as the international currency, the Chinese government recognized its responsibility to participate in the development of the international institutions which provide stability in international markets, John Eatwell, a British economist and the current President of Queens' College, Cambridge, said in a speech at "China Exchange", a community center in London China Town, on Wednesday.

"I think the development of the AIIB is one of the most encouraging phenomenon you have seen recently," Eatwell told Xinhua after his speech.

"That's an important stabilizing approach as what the World Bank and IMF did after the World War II. I'm very pleased that UK government recognizes the importance by joining in the AIIB," he added.

In the speech, he said that the position of China in the financial world is not important right now, but is changing dramatically.

As renminbi gradually replaced the US dollars' dominant position, the economist believes the renminbi will have to face the responsibility of being an agent which helps stabilize the international financial markets.

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