Monday, October 26, 2015

IMF ready to add Chinese Yuan to reserve currency basket

© Toru Hanai
The International Monetary Fund is about to give a green light to the inclusion of the Chinese yuan to the reserve basket of currencies. The final decision is due in November. 
"Everything is on course technically and there is no obvious political obstacle. The report leans clearly towards including the RMB [yuan] in the basket but leaves the decision for the board,” an IMF official told Reuters, preferring not to be named.

"There is no real discussion, no obstacles, all seems on course," another official added.
The IMF will decide in November whether to expand the current composition (US dollar, euro, yen and British pound) of Special Drawing Rights (SDR) with another currency.

The yuan has become the fourth most-used currency in global payments with a 2.79 percent share in August, surpassing the yen, according to the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

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