China’s SDR Distraction
At the start of October, the renminbi was added to the basket of currencies that make up the IMF’s Special Drawing Rights. But if China wants to transform the renminbi into a first-class global currency, it should focus less on symbols and more on the development of deep, liquid, and stable financial markets at home.
https://prosyn.org/cOCzo44
WASHINGTON, DC – At the start of October, China’s currency, the renminbi, was added to the basket of currencies that make up the International Monetary Fund’s Special Drawing Rights, or SDR. Previously, the SDR had been defined as a weighted average of the dollar, euro, British pound, and Japanese yen. Now that the renminbi has been added, it can claim to be one of just five truly global currencies.