RMB Will Join SDR Next Month, Which Will Benefit Chinese Consumers And Enterprises.

The Executive Board of the International Monetary Fund (IMF) will formally discuss whether it will include Renminbi in the SDR basket of currencies as planned in November. In an interview with Xinhua, a number of experts said that the renminbi could become the fifth currency of the SDR currency basket, taking into account the process of RMB internationalization and China's efforts to promote financial market reform.

There are two main criteria for SDR assessment of IMF: first, the size of export trade in the currency issuer ranks the highest in the world; two, the currency is freely available. In the last SDR assessment in 2010, the renminbi had met the first criterion.

SDR is an international reserve asset created by IMF in 1969 to make up for the shortage of official reserves of its member countries. Its value is currently determined by a basket of reserve currencies consisting of four currencies, the US dollar, the euro, the yen and the pound.

Meg Rendesage, former US executive director of IMF, told Xinhua that the main reason for IMF's executive board discussion next month comes from the assessment report prepared by IMF staff, which will mainly assess the measures taken by China to promote the free use of RMB. Lund sage believes that, in general, taking into account RMB internationalization With the progress of IMF, the Executive Board of directors will be able to approve RMB to join the SDR currency basket.

Nicholas Radi, senior researcher at the Pedersen Institute of international economics, the US think tank, told Xinhua that China is doing its best to solve the concerns raised in the preliminary assessment of the SDR currency basket announced at the beginning of IMF8. It includes the publication of currency composition in foreign exchange reserves, to foreign central banks, international financial organizations and sovereign wealth. fund We should open up the inter-bank bond market and foreign exchange market, and take measures to improve the RMB intermediate price quotation. He predicted that in the November discussion, IMF might vote for the renminbi to become the fifth currency of the SDR currency basket.

Former US Treasury Department official, Edwin Truman, senior researcher of Pedersen Institute of international economics, told Xinhua International that during the visit of China's president Xi Jinping to the US in late September, the US side made it clear that the Renminbi should be included in the SDR basket under the premise that the RMB conforms to the existing IMF standards.

Truman said that if the IMF staff assessment report believes that the renminbi meets the criteria for inclusion in the basket of SDR currencies, the US side will support this decision. From this point of view, the possibility of RMB being included in the SDR currency basket is extremely high. But he also pointed out that the IMF executive board may also postpone the final decision until some time next year.

He also pointed out that China adopted the IMF data to publish special standards, reported to the IMF the composition of the official foreign exchange reserve currency, and adopted measures to promote the price of offshore renminbi in line with the price of the offshore renminbi. All these measures helped to promote the RMB to be included in the SDR currency basket.

Just concluded IMF As well as the world bank's autumn annual meeting, Zhu Min, vice president of IMF, said that China, as the world's second largest economy and trade power, should have a corresponding increase in its currency's international status. In this process, whether the RMB can go out, whether it can be used as a trading currency, and whether it can be used as trade clearing currency is very important for China's financial stability and economic development.

Zhu Min said that if the RMB can be included in the basket of SDR currencies, it will help countries to use Renminbi in the transaction and increase Renminbi in the currency reserve, thereby enhancing China's economic and financial strength. At the same time, it will also be the first time that IMF will take the money of an emerging economy as reserve currency, which will be the recognition of emerging economies in the international arena and provide an opportunity for IMF to reform and promote its inclusive development.