China-backed AIIB to lend only in US dollars

Loans by the China-backed Asia Infrastructure Investment Bank will be denominated only in the US dollar, The Financial Times reported, citing an announcement by its new president at the bank’s opening ceremony on Sunday. Analysts said yuan lending by the development bank would have presented challenges, since most member countries likely contributed equity in dollars, and borrowers would have little use for China’s currency unless they relied on Chinese suppliers. Also at the bank’s opening, Premier Li Keqiang said China’s economy grew nearly 7% in 2015, affirming that it is slowing while still allowing the government to say it hit its growth target of “about 7%”.