Chinese yuan to be included in elite currency basket today
China is today fully expected to have its currency, the yuan, added to the International Monetary Fund’s (IMF) basket of reserve currencies, or special drawing rights (SDR).
With IMF director Christine Lagarde giving her blessing earlier this month, it looks to many like a done deal.
The SDR basket currently includes the pound, US dollar, euro and yen.
“Acceptance into the elite currency club is a recognition of the progress China has made in recent years to liberalise its financial system. At the behest of the IMF, China has stepped up these efforts since the summer with a view to claiming the prize of SDR membership,” said Diana Choyleva, chief economist at Lombard Street Research.