The decision shall come into force on 1 October 2016. In the basket of reserve currencies the IMF has already included US dollar, Euro, Japanese yen and British pound. Of particular importance will it have for a number of developing countries, which are actively developing trade with China.
MOSCOW, 30 Nov. The Executive Board of the International monetary Fund (IMF) on Monday included in the basket of reserve currencies (Special drawing rights, special drawing rights, SDR) Chinese yuan, the report said the IMF.
Previously the managing Director of the IMF Christine Lagarde recommended the inclusion of the yuan in the currency basket that determines the composition of the SDR is an artificial means of payment, which the IMF operates.
In the basket of reserve currencies the IMF has already included US dollar, Euro, Japanese yen and British pound. The decision shall come into force on 1 October 2016.
“The decision of the Executive Board on the inclusion of the yuan in the SDR basket is an important milestone in the integration process of the Chinese economy in the global financial system. It also reflects the recognition that the authorities have done in recent years to reform monetary and financial systems of China,” given in the message words of the Fund Lagarde.
SDR is an artificial reserve and means of payment emitted by IMF, it has only non-cash form in the form of records on Bank accounts. The owners of SDR may exchange them for currencies included in the basket, by making transactions with other SDR holders. The tool is used for calculations on IMF financing, regulation of balance of balances of payments, the deficit of the balance of payments, replenishment of reserves.
The inclusion of the yuan in the basket can be considered as a reserve currency. For Central Banks that keep reserves in dollars and euros, this would mean the appearance of another alternative reserve currency. Of particular importance will it have for a number of developing countries, which are actively developing trade with China.
