Remember the renminbi billboard sighting in China back in March of 2015? Well, it has officially landed.
On Monday, October 3rd, 2016, a turning point for America begins: The beginning of the end for the global U.S. Dollar hegemony.
China’s yuan, or Renminbi (RMB), will officially join the International Monetary Fund (IMF)’s Special Drawing Rights (SDR) basket on Saturday, which indicates a step up in the international status of the currency.
- The inclusion is first and foremost recognition of the substantial reform efforts conducted by Chinese monetary authorities.
- “The RMB is already, for a number of years, very much an international currency.
- China has also taken additional measures to allow the inclusion of RMBinto the SDR,” said Jurgen Conrad, head of the Economics Unit at the Asian Development Bank in China.
- Alfred Schipke, the chief China representative of the IMF, thinks that the move’s significance isn’t limited only to the country.
- “[I think] the RMB joining the SDR will indeed be a milestone for China, but also for the international financial system. It, in effect, recognizes the progress that has been made on the reform side in China over the past couple of years,” said Schipke. Continue reading