Nations prefer local currencies in OBOR projects: survey
But 44% of the respondents believe that funding support will come from China's development banks and state-run banks
More than one-third of the countries involved in the Belt and Road Initiative hope to use their currencies to finance OBOR projects, according to a survey published by the International Financial Forum, The Paper reported.
The survey covers central banks in 26 countries, and almost all of them recognize that the initiative has played an important role in driving their economic growth.
Most respondents believe that annual growth will not exceed 1%, but 25% of them are more optimistic, expecting it to be between 2% to 5%.
Meanwhile, 44% of the respondents believe that funding support of Belt and Road projects will come from China’s development banks and state-run banks, arguing that it is the most important source of expected funds.
However, some banks hope to introduce European financial institutions to diversify their funding sources.
At least 32% of the respondents want to use their currencies to finance Belt and Road projects, so as to avoid foreign exchange risks, and 29% agree to using the euro for financing. Only 19% favor the use of the Chinese yuan and US dollar.