China’s Economic Growth recognized by IMF by Yuan’s Inclusion as Reserve Currency
Including yuan in the Special Drawing Right (SDR) basket as its fifth reserve currency, shows the IMF’s recognition of China’s economic development and reform achievements, China’s central bank – the People’s Bank – said today welcoming the decision.
China, however, dismissed concerns over depreciation amid economic slowdown in the world’s second largest economy.
Including yuan in the SDR basket as the fifth international legal tender after the US dollar, the euro, the British pound and the Japanese yen, shows the IMF’s recognition of China’s economic development and reform achievements, China’s central bank said.
“The joining of RMB (the Chinese renminbi) in the SDR basket means the international community has greater expectations on China to play an active role in the world economic and financial arena,” it said in a statement.
IMF Managing Director Christine Lagarde said, “This is an important milestone in the integration of the Chinese economy into the global financial system.”