IMF approves China’s yuan for benchmark currency basket

Tuesday, 1 December 2015 00:17 - - {{hitsCtrl.values.hits}}

WASHINGTON, Nov 30 (Reuters) - The International Monetary Fund on Monday admitted China’s yuan into its benchmark currency basket in a win for Beijing’s campaign for recognition as a global economic power.

The IMF’s executive board agreed to add the yuan, also known as the renminbi, to its Special Drawing Rights (SDR) basket alongside the dollar, euro, pound sterling and yen, in a move earlier backed by IMF chief Christine Lagarde and in-house experts.

To meet the IMF’s criteria, Beijing has undertaken a flurry of reforms in recent months, including better access for foreigners to Chinese currency markets, more frequent debt issuance and expanded yuan trading hours.

The yuan’s inclusion is a largely symbolic move, with few immediate implications for financial markets. But it is the first time an additional currency has been added to the SDR basket and the biggest change in its composition in 35 years.