China�s yuan set for IMF reserve status
BBC
The International Monetary Fund (IMF) is expected to announce on Monday that Chinas currency, the yuan, will join the funds group of international basket of reserve currencies, reports BBC.
Just the US dollar, the euro, Japans yen and the British pound are currently part of this select band.
Earlier this month, IMF head Christine Lagarde backed the yuans inclusion.
If the decision is made, the yuan is likely to join the basket next year, experts said.
China is the worlds second largest economy behind the US and asked for the yuan to become a reserve currency last year.
Reserve currencies are used by central banks and other financial organisations to help pay down international debt and steady exchange rates.
The last change made to the basket was in 2000, when the euro replaced the deutschmark and the franc.
If Beijings wish is granted later on Monday, some analysts have suggest that by 2030 the yuan will become one of the top three major international currencies, together with the dollar and the euro.
Concerns about Beijing keeping the yuan artificially low to help exporters is one reason the currency has previously failed to meet the criteria for reserve currencies set out by the IMF.
However, Chinese officials have a made a concerted effort to build support for the yuans inclusion, and a recent IMF staff report endorsed such a move.
Initially, the currencys inclusion would be largely a symbolic gesture, some analysts have said.
They have also said the yuans ongoing inclusion in the basket would depend on whether China continues its financial reforms.
The International Monetary Fund (IMF) is expected to announce on Monday that Chinas currency, the yuan, will join the funds group of international basket of reserve currencies.
Just the US dollar, the euro, Japans yen and the British pound are currently part of this select band.
Earlier this month, IMF head Christine Lagarde backed the yuans inclusion.
If the decision is made, the yuan is likely to join the basket next year, experts said.
China is the worlds second largest economy behind the US and asked for the yuan to become a reserve currency last year.
Reserve currencies are used by central banks and other financial organisations to help pay down international debt and steady exchange rates.
The last change made to the basket was in 2000, when the euro replaced the deutschmark and the franc.
If Beijings wish is granted later on Monday, some analysts have suggest that by 2030 the yuan will become one of the top three major international currencies, together with the dollar and the euro.
Concerns about Beijing keeping the yuan artificially low to help exporters is one reason the currency has previously failed to meet the criteria for reserve currencies set out by the IMF.
However, Chinese officials have a made a concerted effort to build support for the yuans inclusion, and a recent IMF staff report endorsed such a move.
Initially, the currencys inclusion would be largely a symbolic gesture, some analysts have said. They have also said the yuans ongoing inclusion in the basket would depend on whether China continues its financial reforms.
