2010-12-31
IMF may replace yen with yuan in SDR basket
The International Monetary Fund may begin an examination on its Special Drawing Rights (SDR) valuation basket at the beginning of next year, and new currencies from emerging economies may be included in the basket, Securities Times reported Friday, citing a Japanese report.
The IMF has set new currency weights for SDR valuation basket in its November review. The SDRs, currency units developed by the IMF based on a basket of major currencies, currently is comprised of the US dollar, euro, British pound and Japanese yen.
With the development of emerging economies such as China, India and Brazil, voices calling for a reformed monetary system have become louder. The report said IMF may consider enlarging the basket and candidate currencies may include Chinese yuan and Brazilian real as emerging markets' influence increasing. And the Japanese yen may be replaced by the currency of an emerging economy.
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