Will Chinese renminbi be included in IMF currency basket?
Karjanlahti, Kristiina (04.11.2015)
JulkaisusarjaBank of Finland Bulletin. Analysis
JulkaisijaBank of Finland
Julkaisun pysyvä osoite onhttps://urn.fi/URN:NBN:fi:bof-201511061432
The international use of the renminbi for payments, investments and reserves has grown significantly. Following its increased influence, the IMF will still this year consider adding the renminbi as a SDR basket currency. For China the entry of the renminbi into the SDR basket is a clear political objective. It will be an indication of its stronger role in the global economy. On the other hand, for the IMF it will be critical to guard the credibility and usability of the SDR. This will require that any SDR-basket currency is freely usable and fulfils the operational requirements. Now it will be for the IMF Board to judge whether the renminbi is sufficiently widely used and traded to be deemed as “freely usable”.