Major economies support yuan as IMF reserve currency
(10 August 2015 – China) Some of the world’s major countries see China’s currency as moving toward qualifying as one of the International Monetary Fund (IMF)’s reserve currencies soon.
The recognition follows the IMF staff report which assessed the yuan still has work to do before it qualifies.
Germany reiterated backing for the status “provided the necessary criteria are met,” while Brazil’s IMF representative said the yuan is moving toward qualifying and Russia said its view is based on China’s position and on the timing of adding the yuan.
France expects that China’s accession to the group is inevitable in the long run, though the currency needs to be convertible, according to a Finance Ministry official.
The support from large economies will be key to IMF approval for adding the yuan, also known as the renminbi, to join the dollar, euro, yen and pound in the group that makes up the fund’s Special Drawing Rights basket of currencies.
Following the IMF decision, the United States urged China to make additional reforms to qualify.
Chinese officials including central bank governor Zhou Xiaochuan, have called on the IMF to add the yuan to its SDR basket.
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