Foreign Media: IMF Is Expected To Give RMB International Reserve Currency Status Next Year.

The yuan is expected to be supported by the IMF, and for the first time in history it has become the global reserve currency that is parallel to the US dollar and the euro.

The decision to include Renminbi in the basket of SDR currencies requires the support of voting rights of 85% of the Executive Committee of the IMF, which means that the proposal can be unilaterally vetoed by the United States with 17% voting rights.

According to Thursday's foreign media article on Thursday, the yuan is expected to be supported by the International Monetary Fund (IMF). For the first time in history, it has become the global reserve currency that is parallel to the US dollar and the euro.

The IMF will launch two assessments every ten years later in 2015 to determine which currencies its member countries can put into the official reserve currency basket.

Allowing the yuan to enter the so-called special drawing rights system means that the IMF agrees with the rise of the world's second largest economy, and will also help China's efforts to weaken the dominance of the US dollar in Global trade and finance.

To make the RMB into the basket of reserve currencies, China needs to meet the IMF's series of economic benchmarks and win the support of most of the 187 member states.

Eswar Prasad, who has been working in the international monetary fund before 2006, said that China hopes to pass these two sets of tests.

"It is certainly helpful for China to promote the renminbi as a target of wider acceptance of money," said EVA pall Lhasa, a professor of trade policy at Cornell University and a senior researcher at Brookings Institution.

He stressed that once the IMF recognized the reserve currency, the central banks of all countries in the world, especially developing countries, would be more willing to hold renminbi assets, and "diversify relative to the US dollar, euro, Japanese yen and Swiss Franc".

Whether or not it can be approved as a reserve currency depends to a certain extent on whether the IMF will correct the judgement that the renminbi "can not be freely used" described in the 2010 decision.

After China has met another condition of the IMF and has been identified as a big exporter, there is growing evidence that the renminbi has now passed the test.

The proportion of RMB settlement in China's trade volume has risen to about 20%, and the so-called "point debt market" denominated in renminbi has expanded from zero to seven now only 72 billion 900 million years ago.

The Chinese government also relaxed the entry control of foreigners in the domestic financial market, and signed a number of agreements allowing the renminbi to freely converge in cities such as Hongkong, Singapore, Frankfurt and London.

In an e-mail statement, the International Monetary Fund said that since the last assessment, there has been a lot of development in the issue of the internationalization of RMB, and the upcoming round of assessments will take account of these developments.

In a speech in October, Yi Gang, vice president of the people's Bank of China, said that the state of SDRs would happen at the right time. Governments and officials, including officials working in the International Monetary Fund, were aware of the interest of the global market in the renminbi.

Zhou Hongli, an economist at DBS bank in Singapore who worked in the Hongkong monetary authority, said: "there is a great chance that the renminbi will be included in the special drawing rights" Nathan Chow.

Whether it is political or economic environment is beneficial.

In a report earlier in 2014, the Shanghai Development Research Foundation said that the degree to which RMB will be used in financial markets and trade will exceed Japanese yen and pound sterling in the next few years. The Chinese government should lobby other countries to support Renminbi in the basket of special drawing rights.

Data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) show that the Yuan's share of global currency pfer pactions reached a record 1.72% in September, making it the seventh most widely used currency ranking.

The Belgian based agency handles international capital pfers for more than 10000 banks and other customers in 215 countries.

stay

After the support of the US dollar was proved insufficient, the International Monetary Fund introduced the special drawing rights system in 1969 to support the Bretton Woods system with fixed exchange rates.

Countries with SDRs will be able to claim payments in the form of four currencies, namely, US dollars, euros, Japanese yen and sterling.

The International Monetary Fund says there are about $300 billion in unpaid special drawing rights worldwide.

US Treasury figures indicate US $135 billion official.

In assets, $52 billion is the International Monetary Fund's special drawing rights.

The use of RMB in international trade and finance is far from being comparable to that of the US dollar.

In calculating a country's "foreign exchange reserves", the IMF classifications of Renminbi in "other currencies" accounted for only 3% of the $6 trillion and 300 billion of confirmed holdings.

Of these foreign exchange reserves, 60.7% are US dollars, 24.2% euro and 3.9% pound sterling.

The decision to include Renminbi in the basket of SDR currencies requires the support of voting rights of 85% of the Executive Committee of the IMF, which means that the proposal can be unilaterally vetoed by the United States with 17% voting rights.

According to the constitution of the fund, it is hard to say whether the decision needs 70% or 85% support.

US Treasury spokesman Holly Schulman (Holly Shulman) said in an e-mail response that it is too early to speculate on the outcome of the IMF assessment.

Edwin Truman, Assistant Minister of international affairs at the Clinton administration, said that the measures taken by China to relax control over currency and financial markets may not be enough to persuade the us to change its position. (Truman)

China still maintains strict restrictions on capital flows to prevent bubbles from economic activity caused by speculators.