Tuesday, June 16, 2015

IMF begins process for bringing Chinese Yuan into the SDR

On June 14 the IMF sent a team of analysts to Beijing to begin the process of determining whether the Chinese Yuan will become part of the Special Drawing Rights (SDR) basket of currencies.  Already progressing quickly as a globally used trade currency since 2009, the Yuan or RMB is now looking to make its mark in one of the most important financial institutions in the West.
Since December of last year, the Chinese Yuan has become one of the top five used currencies for international trade, with more than 23 major economies creating swap lines to facilitate its use.  And at the same time that the dollar is losing market share in global trade, the RMB has jumped more than 4% in just the past 12 months.



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