Great Expectations for the Renminbi
The IMF’s recent decision to add China's renminbi to the basket of currencies that determine the value of its reserve asset, the Special Drawing Right, has captured headlines around the world – as well it should. The move reflects high expectations for China's currency – and its economy.
https://prosyn.org/bgB3g95
SHANGHAI – The International Monetary Fund’s recent decision to add the Chinese renminbi to the basket of currencies that determine the value of its reserve asset, the Special Drawing Right, has captured headlines around the world. But the SDR itself has not exactly dominated discussions – much less transactions – since its creation in 1969. So does the decision really matter?