Yuan makes it into IMF’s currency basket
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.