As a part of OBOR it is natural that Chinas geopolitical power in the route

As a part of obor it is natural that chinas

This preview shows page 5 - 7 out of 20 pages.

As a part of OBOR it is natural that China’s geopolitical power in the route will strengthen. By giving the essential financing for such investment China is encouraging and stimulating growth along OBOR that otherwise might take years to realise. The collaboration was a further step when compared to the historical projects such as the GATT (General Agreement on Tariffs and Trade), IMF (The International Monetary Fund) and NATO (The North Atlantic Treaty Organization). Chinese growth OBOR will serve for the upliftment of the Chinese population particularly on the Western side of China which has been influenced by unruly neighbourhood, lack of coastal access and lack of investments. Western part of China is an important part of OBOR’s plans as it will increase the quality of life through job creation, education or other new opportunities. Internationalisation of the Renminbi Renminbi is the official currency of the People's Republic of China. China’s development of financial sector in home and abroad will be an important part of OBOR. OBOR will provide a basis for the further internationalisation of the renminbi (RMB). This strategy has been very actively pursued for the past decade. IMF has also added the RMB to the list of currencies which has Special Drawing Rights (SDRs). It makes RMB an elite class currency. The other currencies in the list are the US Dollar, the Euro, the Japanese Yen and the Great British Pound. China has also entered into over 30 bilateral swap agreements with jurisdictions all over the world, including several states on the OBOR route with major economies such as EU, Great
Image of page 5
4 Britain, Russia, Switzerland and Canada. Even though this financial infrastructure is evolving continually in support of RMB internationalisation in general. It is seen that OBOR will facilitate to Beijing’s efforts to increase the RMB’s influence across the financial world. With the sheer scale of numbers being thrown around in the context of OBOR-related investment, it is expected that both outflows and inflows of RMB capital will be significantly boosted, which will have a very positive impact for Chinese importers and exporters. Financial markets and Islamic finance With the level of spending in OBOR in the coming years, there are opportunities for financial markets in both domestic China and abroad. To develop and flourish in sectors of the financial world where China has so far been a less significant participant for example the Islamic finance debt and equity capital markets in the Middle East. Today the finance sector in the Middle East, led by the financial gateway of Dubai, is seen a tremendous growth in numbers. It is evident that there is a significant role for Chinese financial institutions to play here. D ubai’s International Financial Centre has already attracted interest with four of China’s largest banks viz. Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank and Bank of China.
Image of page 6
Image of page 7

You've reached the end of your free preview.

Want to read all 20 pages?

  • Fall '19
  • jane smith
  • People's Republic of China, OBOR

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors