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Bloomberg
Dominique Strauss-Kahn, the managing director of the International Monetary Fund, said that the yuan may in future be added to the basket of currencies that set the value of IMF monetary units called special drawing rights.
The yuan, also known as the renminbi, could be added in a “while,” Strauss-Kahn said at a press briefing in Beijing today. The move would require the currency to be market-based, he said.
Today’s comments highlight the widening role for the currency of the world’s fastest-growing major economy at a time when officials from countries including China and Russia have challenged the dollar’s dominant position. While China is arranging for more cross-border trade to be settled in yuan, the currency is limited by not being freely convertible.
“The stability of the international financial system can’t hinge on the currency of one single country, even though that’s the largest economy in the world,” said Hua Ercheng, chief economist in Beijing at China Construction Bank Corp. and a former economist with the Washington-based IMF. “The currency basket of SDRs needs to be more representative to diversify risks.”
Strauss-Kahn Sees Yuan Role in Special Drawing Rights
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