(VOVworld) - The International Monetary Fund on Monday said it had adopted a new methodology for calculating the currency amounts in the Special Drawing Rights (SDR) the fund uses for transactions.
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Chinese 100 yuan banknotes are seen on a counter of a branch of a commercial bank in Beijing, China, March 30, 2016. (File photo: Reuters/Kim Kyung-Hoon) |
The IMF said this is a technical preparation to ensure that China's yuan meets the IMF Board's intended weighting.
The new method will be easier to replicate on a simple spreadsheet, providing more transparency to market participants.
The changes will apply to a rebalancing of the SDR basket on October 1st to include the yuan for the first time, a step that gives China prized reserve currency status and moves the yuan a step closer to being freely usable internationally.