BRICSPOST: China Vows Reforms to Help Yuan be Worlds 5th Reserve Currency

Just in case you missed yesterday's blog article, here is a followup from the BRICSPOST. As the year unfolds, this issues is starting to get more media attention. Below some quotes from this article and then a comment.
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"Chinese Premier Li Keqiang on Monday asked the International Monetary Fund (IMF) to include the Chinese currency in the special drawing rights (SDR) basket, endorse the yuan as a global reserve currency alongside the dollar and euro.

Li met IMF Managing Director Christine Lagarde in Beijing on Monday.

State news agency Xinhua quoted Li as saying “China will speed up the basic convertibility of yuan on the capital account and provide more facility for domestic individual cross-border investment and foreign institutional investment in China’s capital market”.

Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance."

. . . . .

"China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries."

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"Li told Lagarde, “China will push forward financial reform for the real economy and prevention of risk. China will develop private, small and medium banks to provide better support for small businesses”.

“China hoped to, through the SDR, play an active role in the international cooperation to maintain financial stability and promote the further opening of China’s capital market and financial area,” he added."

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My added comments:

By now it should be obvious that China's goal is to get its currency recognized "through the SDR". People need to understand that the SDR used at the IMF is the vehicle intended for implementing major monetary system change. There are many possible variations on how that might happen (including the possibility adding some gold component to the SDR basket sometime in the future). But there is no solid evidence that points to China planning a future of going it alone to back the Yuan with gold outside the IMF to replace the US dollar as the global reserve currency. If that changes, we will cover it here.

Added note from Jim Rickards Twitter:  China's application to join SDR club