Beijing is pushing for the inclusion of the renminbi as of one of the global reserve currencies of the International Monetary Fund and hopes to get a shot at the Special Drawing Rights system during the organization’s twice-a-decade review this year, reports Chinese financial news website fx678.com.
The review will begin with an informal IMF board meeting in May before a formal review in autumn. Any changes decided during the review will take effect in January next year. Officials of Asian countries and G20 members said unlike the previous review five years ago, the matter of the renminbi’s inclusion will be discussed actively this time around.
The renminbi’s exchange rate has strengthened greatly from five years ago and the currency is now widely used in overseas trading, which could eliminate one of the IMF’s main reasons for barring the currency from its Special Drawing Rights system during the previous review. Around 20% of China’s trades are settled in renminbi and Beijing has signed agreements to trade the currency in Hong Kong, Singapore, Frankfurt and London, said the report.
Full article: RMB likely to enter IMF’s global reserve currencies list (Want China Times)