Chinese Currency To Be Added To The IMF's 'Basket' Of Global Currencies

New 100-yuan notes wheeled out in the factory of China Banknote Printing and Minting Corporation, Oct 29. (Photo: Xinhua)

The Guardian: Chinese yuan likely to be added to IMF special basket of currencies

China hopes stamp of approval will improve yuan’s desirability among investors and undermine hegemony of US dollar as global reserve currency.

China’s efforts to make the yuan an international currency on a par with the US dollar are to receive a fillip with the International Monetary Fund widely expected to add it to a special basket of global currencies.

Analysts say the shareholders in the Washington-based IMF will vote on Monday to include the yuan, also known as the renminbi, as the fifth member of its special drawing rights currency basket alongside the dollar, the Japanese yen, sterling and the euro.

China has been lobbying for the IMF to add the yuan to its basket of reserve currencies, which it uses to lend to sovereign borrowers. A vote to include the currency in the SDR basket would mark a significant milestone for Beijing, according to experts.

WNU Editor: It is only a question of time before it is added to the IMF's basket of global currencies. The real question that concerns everyone is the long term is .... will the Chinese yuan become the world's reserve currency replacing the U.S., as the U.S. did with the British pound over a century ago.