IMF to re­view yuan for cur­rency bas­ket

China Daily (Canada) - - FRONT PAGE - By CHEN WEIHUA in Washington chen­wei­hua@chi­nadai­lyusa.com

The In­ter­na­tional Mon­e­tary Fund is sched­uled to for­mally meet later this year to re­view whether to in­clude the Chi­nese cur­rency in its Spe­cial Draw­ing Rights (SDR) bas­ket.

The cur­rent SDR bas­ket, which in­cludes the US dol­lar, the Bri­tish pound, the euro and the Ja­panese yen, is re­viewed ev­ery five years.

Sid­dharth Ti­wari, di­rec­tor of IMF’s Strat­egy, Pol­icy and Re­view Depart­ment, said on Tues­day that “we are also propos­ing ex­tend­ing the cur­rent SDR bas­ket by nine months un­til Septem­ber 30, 2016, to avoid changes in the bas­ket at the end of the cal­en­dar year”.

That can be costly for some SDR users to re­bal­ance their port­fo­lios, as mar­kets and trad­ing are typ­i­cally thin at the be­gin­ning of the year. The cur­rent SDR bas­ket ex­pires at the end of 2015.

“An ex­ten­sion of nine months would also al­low users to ad­just to a po­ten­tial changed bas­ket com­po­si­tion should the ex­ec­u­tive board de­cide to in­clude the RMB,” he said.

But Ti­wari in­di­cated that the pro­posed ex­ten­sion, which will be de­cided by the 24-mem­ber ex­ec­u­tive board later this month, would not pre­judge the tim­ing of con­clu­sion or out­come of the re­view.

In a re­port re­leased on Tues­day, the IMF said that at the time of the last re­view in 2010, China met the gate­way ex­port cri­te­rion, mean­ing

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