Geithner Calls for Widening IMF Currency Basket ... and ~ China PBOC's Yi: Convertible Yuan Not Needed For SDR ... and .. IMF ~ SDRs and the U.S. Dollar ... Articles of Interest ...
September 1, 2011
Yuan Could Become part of IMF's Basket
*China could move closer to letting its currency float more freely if the renminbi were able to join the mechanism that underpins the International Monetary Fund’s own reserve currency.
*Clearer rules for joining the currency basket behind the IMF’s special drawing rights (SDRs) “would increase the incentives for emerging market countries to promote greater internationalisation of their currency.
*The IMF holds SDRs, underpinned by dollar, euro, yen and pound, as its reserve currency.
*Nicolas Sarkozy, the French president, has put the initiative on the agenda of the Cannes summit of G20 leaders at the start of November, for which Thursday’s workshop at the European Central Bank in Frankfurt was meant to help lay the ground.
Among the “first signs” of progress, China has already met the export criterion of the SDR basket. Steps to make it easier for foreign companies to trade in renminbi were also a step “in the right direction”.
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