Yuan makes it into IMF’s cur­rency bas­ket

China Daily (Canada) - - NEWS CAPSULE -

The In­ter­na­tional Mon­e­tary Fund (IMF) on Mon­day ad­mit­ted China’s yuan into its bench­mark cur­rency bas­ket, af­ter com­plet­ing the reg­u­lar five yearly re­views of the bas­ket of cur­ren­cies that make up the Spe­cial Draw­ing Right (SDR).

Start­ing on Oc­to­ber 1, 2016, the RMB is de­ter­mined to be a freely us­able cur­rency and will be in­cluded in the SDR bas­ket as a fifth cur­rency, along with the US dol­lar, the euro,the Ja­panese yen and the Bri­tish pound.

The in­clu­sion of the RMB will en­hance the at­trac­tive­ness of the SDR by di­ver­si­fy­ing the bas­ket and making it more rep­re­sen­ta­tive of the world’s ma­jor cur­ren­cies.

The weight of the RMB in the SDR bas­ket is 10.92 per­cent, whereas the weights of the US dol­lar, the euro, the Ja­panese yen and the Bri­tish pound are 41.73 per­cent, 30.93 per­cent, 8.33 per­cent and 8.09 per­cent re­spec­tively.

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