Michael Pettis: Will China’s Asian Infrastructure Investment Bank Eventually Matter?

From Naked Capitalism:

The financial media has attributed considerable importance to the fact that many of America’s close allies, including the UK, Australia, and Israel, have joined China’s new infrastructure bank against the clearly-stated desires of the US. While these moves seem to signal America’s declining influence, it does not necessarily follow that the infrastructure bank is destined to become a major international institution any time soon.
Michael Pettis deflates some of the hype surrounding this initiative, arguing that it is less significant from a geopolitical and practical perspective than virtually all commentators assume. China is simply not about to become the issuer of the reserve currency any time soon, and that limits how much financial clout it will have.

http://www.nakedcapitalism.com/2015/04/michael-pettis-will-chinas-asian-infrastructure-investment-bank-eventually-matter.html