The Rise Of China Continues

The yuan has rapidly grown in importance in recent years as China -- the world's top trading nation -- has used it to settle more of its commerce, and made it directly convertable with more currencies (AFP Photo/)

AFP: China welcomes IMF backing to make yuan world reserve currency

China on Saturday welcomed backing from IMF experts that the yuan should be included in its reserve currencies, saying the move would strengthen the world's financial system.

Now the world's second-largest economy, China asked last year for the yuan to be added to the elite basket of SDR currencies, but until recently it was considered too tightly controlled to qualify.

It now looks likely the yuan will be formally admitted to the IMF's "special drawing rights" currency basket at the end of the month, which would mark a milestone in China's efforts to become a global economic power.

IMF chief Christine Lagarde said the fund now deemed the yuan "meets the requirements to be a 'freely usable' currency" -- a key hurdle to joining the yen, dollar, pound and euro as a leading unit in international trade.

WNU Editor: China's goal has always been the same .... to be the world's dominant currency with the next 2 decades. By the looks of it .... they are probably going to reach their goal sooner rather than later.