The IMF officially recognised the yuan an international reserve currency

WASHINGTON, March 5. /Corr. Andrew Shitov/. The international monetary Fund (IMF) officially recognized the Chinese yuan an international reserve currency. This is stated in a statement on Friday, the press service of the Fund.

As noted, in connection with the recognition of the yuan as a reserve currency of the institution’s Board of Directors adopted the decision on its inclusion as a separate line in the quarterly reports on the composition of foreign exchange reserves of member countries of the IMF along with the US dollar, Euro, Japanese yen, British pound sterling, Swiss franc, Australian dollar and canadian dollar. The consideration of the yuan in the accounts “means that the member countries of the organization will be able to take into account as their official reserves foreign assets denominated in yuan that are freely available for the needs of financing of the balance of payments”, – explained in the IMF.

As specified, on valuation of foreign exchange reserves of the PRC this step will have no effect. This is due to the fact that “the assets of people’s Bank of China in RMB are not a foreign exchange reserves” and are not included in the core accountability of the IMF.

The decision comes into force from 1 October 2016. At the same time the yuan included in the basket of reserve currencies by the IMF together with the US dollar, Euro, yen and pound sterling.