Greater capital flows, lower financing costs

While many would associate the Belt and Road Initiative (BRI) with greater infrastructure connectivity among participating countries, promoting financial cooperation and enhancing capital flows are also objectives of the BRI in a bid to establish a transnational platform in order to deepen economic cooperation and financial integration.

As capital flows between BRI countries heighten, there would be an increase in macroeconomic liquidity, defined as the amount of currency circulating in an economy, in countries which are net recipients of such capital flows. This translates into greater availability of credit in these economies. Therefore, businesses now have more funds available to them for their expansion purposes.