News from the International Monetary Fund, recommending inclusion of the yuan in the Special Drawing Rights
IMF head Christine Lagarde:
- IMF staff assesses that the RMB meets the requirements
- Staff proposes that the ... RMB ... (to) include it in the SDR basket as a fifth currency, along with the British pound, euro, Japanese yen, and the U.S. dollar
- Chinese authorities have addressed all remaining operational issues
- I support the staff's findings. The decision, of course, on whether the RMB should be included in the SDR basket rests with the IMF's Executive Board. I will chair a meeting of the Board to consider the issue on November 30.
(Full text of her statement is here if you want the details)
While this looks like another step along the road to yuan inclusion, its more than that; it pretty much seals the deal. The IMF Board is expected to approve on November 30.
The PBOC have welcomed the statement (of course).
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Plenty more on the news, if you want it:
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Assessments are that around $1tln of global reserves will convert to Chinese assets if the yuan joins the IMF's reserve basket
