Chinese yuan set to join IMF's elite currency basket
Baku, October 1, AZERTAC
China's yuan is poised to enter the International Monetary Fund's elite SDR basket of currencies, elevating Beijing's banknotes into a family long exclusive to global reserve assets, according to AFP.
A symbolic coup for policymakers in Beijing, the move represents a milestone in raising the economic profile and prestige of China, the world's second-largest economy, and the success of a long-running effort by the People's Bank of China.
The move will formally occur Saturday, with the yuan's induction following a decision first announced in November last year, when the IMF found that China's currency met the standard of being "freely usable." The yuan now joins a club also comprising the US dollar, pound, yen and euro.
In an announcing the change, IMF Managing Director Christine Lagarde said Friday that the inclusion of the yuan, also known as the renminbi or "people's currency," showed China's improved stewardship of its economy.
"The renminbi's inclusion reflects the progress made in reforming China's monetary, foreign exchange and financial systems and acknowledges the advances made in liberalizing and improving the infrastructure of its financial markets," she said.
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