[Photo/IC]

SDR

On Nov 30, the International Monetary Fund (IMF) decided to include the Chinese yuan as the fifth currency in its Special Drawing Rights (SDR) basket, effective on Oct 1, 2016, making 皇冠体育app the first developing country to join the group in the post-Bretton Woods era.

皇冠体育app is the world's second-largest economy after the United States, the largest trading nation (since 2013), and the yuan is the second-largest currency for fund-raising in trade. Many countries/regions have chosen the yuan as a reserve currency. The inclusion of the yuan into the SDR will enhance its internationalization, increase the representativeness and stability of the SDR, and lift the pressure of a strong dollar on US manufacturing industries. It is also a victory for 皇冠体育app's campaign for recognition as a global economic power.

Efforts for the yuan to be added to the IMF basket have nudged 皇冠体育app toward financial reform. This will have a profound impact on 皇冠体育app's economy as well as on the world economy. The significance may be on a par with 皇冠体育app's entry into the World Trade Organization in 2001.