China Wins Long-Sought Reserve Currency Asset Status

Finance and Trade
01/12/2015 08:26

The International Monetary Fund (IMF) is adding China's yuan to its benchmark currency basket in a step that the Beijing government has long lobbied for to provide recognition of its global economic power. The yuan, also known as the renminbi, joins the dollar, euro, pound sterling and yen in the Special Drawing Rights (SDR) basket alongside. To meet the IMF’s criteria, Beijing undertook a program of reforms in recent months, including better access for foreigners to Chinese currency markets, more frequent debt issuance and expanded yuan trading hours. But the IMF stressed that China is expected to continue with reforms. China's central bank said it would "accelerate economic reforms and financial opening up, and contribute to promoting world economic growth, safeguarding financial stability and improving global economic governance. China is the world's second-largest diamond consumer.