China looks to add yuan to IMF currency basket

China is in talks with the International Monetary Fund to include the yuan in the institution’s basket of reserve currencies, according to a central bank official.

“We are evaluating this and are actively in talks with the fund,” People’s Bank of China Deputy Governor Yi Gang said at a press conference in Beijing Thursday. “We hope it can fully consider the progress of yuan internationalization, allowing the yuan to be part of the SDR basket in the foreseeable future.”

China is promoting the global usage of its currency as it seeks to liberalize domestic interest rates and open up capital markets. The yuan overtook Canada’s dollar to rank fifth for use in international payments in December, after passing the euro as the second-most used in trade finance in 2013.

The Washington-based IMF will later this year conduct a twice-a-decade review of the currencies in its Special Drawing Rights that members can count toward official reserves. The basket now comprises of the dollar, euro, yen and British pound.

Full article: China looks to add yuan to IMF currency basket (Sydney Morning Herald)

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