What does the inclusion of the yuan in the number of reserve currencies mean for the world? In this article I would like to summarize some consequences and outcomes of that really important event in the world financial system which were expressed by the number of top-recognized financial experts throughout the world.
The effects are manifested only in the long term, but may prove to be very ambitious. As we know, on the 30th of November the Board of Directors of the International Monetary Fund (IMF) decided to include the Chinese yuan in the calculation of the basket of special drawing rights (Special Drawing Rights - SDR). De facto, this means that the yuan is recognized as a reserve currency on a par with the dollar, euro, pound and yen. The decision was widely expected. Back in early November, IMF Managing Director Christine Lagarde sounded fund analyst recommendations on inclusion of the yuan in the SDR. Why is the Chinese government so strongly desired to see the yuan among reserve currencies? What will change after the actual inclusion in the October 1, 2016?
In August, when there was a sudden collapse of the yuan, many commentators considered this declaration currency war b…
Read article
Translate to English Show original