World Economy

G7 to Include Renminbi in IMF Basket

G7 to Include Renminbi in IMF BasketG7 to Include Renminbi in IMF Basket

Finance chiefs from the Group of Seven industrial nations agreed on Friday that including China’s renminbi in the International Monetary Fund’s currency basket is desirable, but a technical review must be completed first, Reuters reported. The inclusion of the renminbi, also known as the yuan, as part of the IMF’s unit of account would mark another stage in China’s rise as a global economic player, requiring the United States to accept a dilution of its power in international finance. German Finance Minister Wolfgang Schaeuble, who hosted the G7 meeting in Dresden, said the finance chiefs discussed the possible inclusion of the renminbi in the basket of currencies that makes up the IMF’s Special Drawing Rights (SDR). The SDR is a virtual currency that defines the value of IMF reserves, used for lending to countries in financial difficulty.