IMF opens up opportunities for exchange Addition Yuan In SDR Reference Value

IMF institutions to freeze the value of a reference basket of currencies SDR / Special Drawing Rights until October 2016, to give the market time to adjust the potential addition of Chinese currency Yuan as part of a global reserve currency.

Furthermore, the Fund management will decide in November whether the Yuan will join the SDR currency basket.

Beijing has recently been loosened governmental control over the yuan exchange rate, so as to let the yuan fell sharply. The IMF also thinks the policy change is a step forward to let the exchange rate move freely can be the first step for the yuan to keep part of the SDR basket.

Advantages of joining a currency basket SDR is used as a reference for international payments and widely traded in the forex market. Washington hopes Beijing will continue to reform its currency policy and to meet IMF criteria.