22827
IMF Hesitant to Add Yuan to Reserve Currency Basket
World Economy

IMF Hesitant to Add Yuan to Reserve Currency Basket

The International Monetary Fund has said there will be no quick decision as to whether it may include the Chinese yuan in its strategic basket of reserve currencies. The renminbi struggles to meet key financial norms, DW reported.
The IMF hinted it needed to do “significant work” in reviewing the inclusion of China’s national currency in its basket of reserve currencies.
Such a promotion of the yuan, otherwise known as the renminbi, is sought by the Chinese government in a bid to expand the use of the currency globally and join the US dollar, the euro, the British pound and the Japanese yen making up the basket currently.
The IMF executive board said the yuan showed a mixed performance in trying to meet international financial norms and announced a final decision would only be due in November.
It admitted, though, that the yuan’s international use “had been increasing, albeit from a low base, since the last valuation review.”
While the yuan meets the criteria of being a currency used for large-scale exports of goods and services, other conditions still appear to be problematic.

 

Short URL : http://goo.gl/oqXEMe

You can also read ...

While China tries to alleviate its demographic crunch, the aging society means a pension shortfall.
Forget that image of sweatshops making all kinds of cheap...
Russia Economic Recovery Underway
Retail sales in Russia picked up in April, while real wages...
In 2017 banks had total mortgage lending of around $352 billion.
High levels of household debt are the greatest risk to Sweden’...
Saudi Gov’t Told Not to Boost Spending
The International Monetary Fund urged the Saudi government not...
Greece at Crucial Point
Discussions are heating up over future debt repayments for...
Brazil CB Keeps Rates on Hold
Brazil’s central bank considered cutting interest rates last...
Peru Economy Strengthens
Economic growth in Peru strengthened in the first quarter...
EU Tells Italy to Cut Debt, Warns of Euro Spillover
Italy’s incoming government should aim to cut its heavy public...

Trending

Googleplus