China ready to celebrate as renminbi nears SDR basket inclusion - MUFG

FXStreet (Delhi) – Lee Hardman, Currency Analyst at MUFG, notes that the IMF representatives have told China that the renminbi is likely to join their SDR basket according to Chinese officials with knowledge of the matter.

Key Quotes

“Apparently Chinese officials are so confident of winning approval that they have begun preparing statements to celebrate the decision. IMF staff members are due to present their recommendation to the fund’s executive board for a vote as soon as next month. By allowing the renminbi into the SDR basket it may encourage the Chinese authorities indirectly to be less willing to contemplate a sharper devaluation of the renminbi.”