Renminbi going into the SDR basket
The renminbi will join the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) basket this Saturday, 1 October, which is also China’s National Day. So the day will be double-happiness for China.
For the world, the renminbi’s entry to the SDR basket seems to be much to do about nothing, with only a symbolic impact on both the global and Chinese economy. Even with the third largest weighting (10.92%) in the basket, just behind the USD’s 41.73% and the euro’s 30.93% (see chart), the renminbi remains an indirect, and a tiny, part (0.27%) of global reserves.
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