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IMF team in China to assess reserve-currency status for yuan
June 15, 2015, 4:39 pm

China is promoting the use of its currency as an alternative to the dollar in global trade and finance and more and more nations now want to capture the fast-growing market for offshore trade in yuan, also known as the renminbi [Xinhua]

China is promoting the use of its currency as an alternative to the dollar in global trade and finance and more and more nations now want to capture the fast-growing market for offshore trade in yuan, also known as the renminbi [Xinhua]

The International Monetary Fund, which holds the key to the Chinese yuan becoming an international reserve currency through a review of its Special Drawing Rights basket, has sent a team to Beijing on Monday.

An IMF statement on Monday said the team will discuss the technical aspects of including the yuan as a reserve currency with Chinese officials.

The five-yearly review of the SDR basket is due by year-end.

IMF Managing Director Christine Lagarde has said earlier that the real question is ‘when’ not ‘if’ the yuan qualifies.

Germany, Australia and France have supported the yuan’s bid to be added.

“We’re supportive of China’s efforts to integrate its economy into the world’s economy,” Australian Finance Minister Mathias Cormann said earlier this year.

The IMF team’s preliminary assessments to label reserve-currency status for the yuan would be announced in July.

According to the IMF, selections of currencies for the SDR basket are based on two criteria – the size of the country’s exports and whether its currency is freely useable.

The SDR, an international reserve asset, currently comprises the US dollar, Japanese yen, British pound and euro.

 

TBP and Agencies

4 Responses to IMF team in China to assess reserve-currency status for yuan

  1. wt baker Reply

    June 15, 2015 at 9:28 pm

    Why would China have a y interest in the IMF reserve currency membership when the IMF and World Bank are potentially finished?

  2. Lisa Lyons Reply

    June 16, 2015 at 2:34 pm

    Maybe that’s why they are trying to endorse it…so they won’t be done…or so they won’t go away

  3. Louis Robert Reply

    June 16, 2015 at 9:04 pm

    On this issue, China does not need the IMF, least of all its approval on anything.

    China must rather pursue its own objectives to its advantage, the first being that the renminbi becomes the de facto reserve currency replacing the US$, regardless of what the Empire and the IMF think. It is predictable that in any case, and sooner than later, most countries (including most Western countries…) will walk in China’s footsteps and use the renminbi when trading with China. No need for the US$ as a parasitic go-between in those transactions anymore.

    From now on, the world can advantageously dispense with the whole obsolete Western “world order”, now become pure disorder throughout the world and in most respects.

  4. Ipman Reply

    June 17, 2015 at 11:06 am

    The IMF are parasitic and those few try to control the world’s finance for way to long. Remember this was the organization that dominated and set the rules. Example these dictators have given some nation loans and added INTEREST that they can’t repay, and in so doing the Big Land Shark Co-operations posing as US business come in and plunder and steal that country’s resources. Leaving them weak and voiceless, which in turn the IMF de-values that country’s Dollars. There is a phrase the West call other smaller developing countries (THIRD WORLD). Bottom line the BRICS nations don’t need the IMF to dictate them.

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