IMF to Include China in SDR Basket

What good will it bring?
IMF to Include China in SDR Basket
International Monetary Fund's Research Department Director Olivier Blanchard speaks during a press briefing at a hotel in Beijing, China Tuesday, Jan. 20, 2015. AP Photo/Andy Wong
Valentin Schmid
Updated:

The cat is out of the bag. China will join the club of nations whose currencies make up the international reserve basket.

The basket is called Special Drawing Rights (SDR) and the International Monetary Fund reviews its contents every five years, including 2015.

Tipped for an inclusion this year, China’s yuan has finally gotten the nod.

“The renminbi meets the requirements to be a ‘freely usable’ currency and, accordingly, the staff proposes that the executive board ... include it in the SDR basket as a fifth currency,” IMF Managing Director Christine Lagarde stated on Nov. 13.

Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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