Yuan’s prospects lifted for IMF bas­ket

China Daily (Canada) - - NEWS CAPSULE -

The yuan’s dis­place­ment of the Ja­panese yen as the world’s fourth most-used cur­rency is likely to bol­ster the Chi­nese cur­rency’s ad­mis­sion to the In­ter­na­tional Mon­e­tary Fund’s (IMF) Spe­cial Draw­ing Rights bas­ket of cur­ren­cies, an­a­lysts said.

On Tues­day trans­ac­tion ser­vices provider Swift re­ported the yuan’s new us­age rank­ing.

Wil­liam T. Wil­son, a se­nior re­search fel­low at The Her­itage Foun­da­tion in Washington, noted sev­eral rea­sons for the greater use of the yuan: In 2013 China re­placed the US as the world’s largest trad­ing na­tion. The yuan, also called the ren­minbi or RMB, has ap­pre­ci­ated in real terms against most cur­ren­cies the past decade to make it a de­sir­able cur­rency be­cause of its preser­va­tion of store of value. And with China now the largest trad­ing part­ner with 75 na­tions (many of them in Asia), it is quickly be­com­ing a re­gional re­serve cur­rency.

“These fac­tors all in­crease the prob­a­bil­ity the RMB will be in­cluded in the IMF (bas­ket) some­time soon — per­haps a year from now,’’ Wil­son said in an e-mail to China Daily USA.

PHOTO / AGEN­CIES

Wang Qiang of China watches the ball as she hits a re­turn against Caro­line Woz­ni­acki of Den­mark dur­ing their sin­gles match at the China Open ten­nis tour­na­ment in Bei­jing on Oct 6. Woz­ni­acki won.

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