Nepal | September 29, 2020

IMF delays adding yuan in SDR basket

Agence France Presse
Share Now:

While renminbi’s international use has been increasing, whether it is a freely usable currency is yet to be reviewedWashington, August 5

Washington, August 5

The International Monetary Fund (IMF) said on Tuesday that it needs to do ‘significant work’ in reviewing the inclusion of China’s currency in its basket of ‘special drawing rights (SDR)’ reserve currency.

The Chinese government is seeking to expand use of the yuan, also known as the renminbi (RMB), by having it included in the SDR, an international reserve asset that currently is comprised by four currencies: the dollar, euro, pound and yen.

The IMF executive board, which represents the institution’s 188 member nations, will make its final decision in November, a senior IMF official said, speaking on condition of anonymity.

“The RMB’s international use has been increasing, albeit from a low base, since the last SDR valuation review,” the IMF said in a report.

According to the IMF, the yuan meets the criteria of being a currency used for widescale exports of goods and services. But other conditions remain to be examined.

“A key focus of the review will be the determination on whether the RMB is a freely usable currency,” IMF said.

In the IMF view, a freely usable currency is determined by ‘the actual international use and trading of currencies’, not whether a currency is either freely floating or fully convertible.

The yuan is tightly controlled by the Chinese government, a thorn in the side of China’s relations with the United States, the IMF’s largest shareholder. The US government has long accused China of keeping the yuan undervalued to boost its exports.

“Significant work remains outstanding to inform the board’s determination with regard to the RMB’s inclusion in the SDR basket,” the IMF report said.

In late May, the IMF said that it did not consider the yuan undervalued, and the Group of Seven economic powers said they unanimously agreed that the yuan should be included in the SDR basket, but the process should not be rushed.

The last time the SDR basket was modified was in 2000, when the euro replaced France’s franc and Germany’s deutschemark.

Whatever the outcome on the yuan decision, the IMF report proposed that the current SDR basket remain in force until September 30, 2016, and not expire as planned at the end of this year, to allow more time for SDR users to adapt to the new basket.

The IMF executive board is expected to decide on that extension in August.

A version of this article appears in print on August 06, 2015 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

leicester city, Jamie Vardy

Vardy treble inspires Leicester to 5-2 win over Man City

MANCHESTER: A Jamie Vardy hat-trick coupled with goals from James Maddison and Youri Tielemans steered Leicester City to a stunning 5-2 win at Manchester City on Sunday and kept them top of the Premier League with a maximum nine points from three games. City had not conceded five go Read More...

Prominent personalities urge govt to save Dr KC

KATHMANDU, SEPTEMBER 27 A group of 33 citizens, who once held prominent positions, have urged the government to save the life of Dr Govinda KC, who has been staging a fast-unto-death demanding reform in the medical education sector for the past 14 days. Issuing a joint press release today they Read More...

La Liga, barcelona, Lionel Messi

Messi back in scoring business in dream start for Koeman

BARCELONA: Lionel Messi was back in scoring business for Barcelona on Sunday, leading them to a resounding 4-0 win at home against Villarreal in a near-perfect La Liga opener for the Catalans under new coach Ronald Koeman. Teenage forward Ansu Fati was in inspirational form for Barca, c Read More...

Atletico Madrid, Luis Suarez, La Liga

Suarez scores twice, gets assist as Atletico lay down marker

MADRID: Luis Suarez had a stunning impact on his debut for Atletico Madrid following his move from Barcelona, scoring twice and providing an assist as his side crushed Granada 6-1 at home in their first game of the La Liga season on Sunday. Suarez, who only completed his switch from Barc Read More...

Replace all Cabinet ministers: NCP Co-chair Dahal

KATHMANDU, SEPTEMBER 27 Co-chairs of the ruling Nepal Communist Party (NCP) — Pushpa Kamal Dahal and Prime Minister KP Sharma Oli — met today to discuss Cabinet reshuffle. A source close to Dahal told THT that Dahal asked Oli to replace all the ministers in his Cabinet, but the PM did not Read More...

CCTV surveillance/monitoring of kathmandu traffic

People told to be aware of fraudsters

KATHMANDU, SEPTEMBER 27 Police have urged people, especially those going abroad or returning from foreign countries, to be aware of fraudsters offering to exchange dollar bills at a rate cheaper than the market price. According to statistics with the Metropolitan Police Office, at least such 1 Read More...

Tourism activities resume in Pokhara

POKHARA, SEPTEMBER 27 Tourism industry has shown signs of revival after six months of the COVID-19 induced lockdown was relaxed in Pokhara. Mardi Himal Trek has witnessed mobility of tourists. Number of domestic tourists along the trekking route is on the rise, according to Raju Poudel, owner Read More...

NCB arrests three with 10 kg opium in Pokhara

KATHMANDU, SEPTEMBER 27 The Narcotics Control Bureau, Koteshwor, arrested three persons with 10 kilograms opium from Pokhara Metropolitan City, Kaski, yesterday. They have been identified as Gaja Pun, 50, and Chakkar Bahadur Pun, 40, of Eastern Rukum and Rabi Gurung, 24, of Gorkha. Superint Read More...