Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken February 10, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
Reuters: IMF Lifts Weighting of Dollar, Chinese Yuan in SDR Basket
BEIJING (Reuters) - The International Monetary Fund said on Saturday it has increased the weighting of the dollar and Chinese yuan in its review of the currencies that make up the valuation of its Special Drawing Rights (SDR), an international reserve asset.
The review is the first since the yuan, also known as the renminbi, joined the basket of currencies in 2016 in what was a milestone in Beijing's efforts to internationalise its currency.
The IMF raised the U.S. currency's weighting to 43.38% from 41.73% and the yuan to 12.28% from 10.92%. The euro's weighting declined to 29.31% from 30.93%, the yen's fell to 7.59% from 8.33% and the British pound fell to 7.44% from 8.09%.
The IMF said in a statement its executive board had determined the weighting based on trade and financial market developments from 2017 to 2021.
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Update #1: IMF lifts yuan’s weight in SDR basket in major win for China’s currency, economy (Global Times)
Update #2: The IMF is lifting its weighting of the US dollar and Chinese yuan in its basket of special international reserves (Insider)
WNU Editor: This IMF decision was based on data from 2017 - 2021. Something tells me that the Euro and British pound are going to be downgraded even more the next time the IMF does this assessment of currencies.
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