Tuesday, October 20, 2015

Reuters: UK Official Sees Sound Case for Yuan to Enter the SDR Currency Basket

Reuters runs this article quoting UK Treasury official Katharine Braddick as saying in her opinion China is making a sound case for inclusion of the yuan into the SDR currency basket. The article says most observers expect an announcement on this from the IMF on November 4th. Below are some quotes.

"China's yuan has a solid case for being judged a reserve currency by the IMF in a decision due early next month, according to a senior civil servant dealing with the development of Britain's financial links with China.
The comments by Treasury director Katharine Braddick follow signs China is making quiet progress on creating the market infrastructure needed to make the yuan, or renminbi (RMB), fully convertible. Braddick chairs the London Hong Kong RMB Forum and is Britain's member of the EU's Financial Services Committee.
Convertibility is the central condition for inclusion in the basket of currencies used to value the International Monetary Fund's Special Drawing Rights, a virtual currency that defines the value of IMF reserves and its emergency payouts to members.
Asked on the sidelines of a banking seminar on China if Britain supported the yuan's admission, Braddick said: "I personally think there is a sound evidence base, but the IMF will need to look at it in considerably more detail.

"The yuan is clearly trading, it will be an investment currency, it is here to stay," she added."

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