China’s currency, the yuan, seems to be on track to be included in the International Monetary Fund’s (IMF’s) benchmark currency basket, putting it on par with the US dollar, euro and pound sterling.
A draft report by IMF staff who have been assessing the yuan’s technical criteria seems to be favourable.
A positive review by IMF staff will lower the hurdle for board approval, as a 70 per cent voting majority is needed rather than the 85 per cent which is normally set for tough decisions. The IMF’s executive board is currently reviewing the Special Drawing Right (SDR), an international reserve comprising the major currencies: the euro, Japanese yen, pound sterling and US dollar.