Yuan Set to Join IMF Basket in Step Toward Currency Big Leagues
- IMF staff recommend including yuan in SDR basket, Lagarde says
- Fund's executive board to vote on inclusion on Nov. 30
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China’s yuan is poised to enter the big leagues of global currencies, according to the judgment of the International Monetary Fund.
IMF staff have recommended the yuan be included in the fund’s Special Drawing Rights reserve-currency basket, alongside the U.S. dollar, euro, pound and yen, IMF Managing Director Christine Lagarde said Friday. The staff nod makes approval by the fund’s board this month all but certain, as major IMF shareholders including the U.S. have said they will support inclusion if the yuan meets IMF criteria. It would be the first change in the SDR’s currency composition since 2001, when the euro replaced the German deutsche mark and French franc.