IMF increases the proportion of USD and RMB in the basket of currencies

This is the first assessment since the yuan joined the SDR basket in 2016, marking an important milestone in China’s efforts to internationalize the currency.

Specifically, the IMF increased the proportion of the dollar from 41.73% to 43.38% and the yuan from 10.92% to 12.28%. Meanwhile, the share of the euro fell from 30.93% to 29.31%, the yen fell from 8.33% to 7.59% and the British pound fell from 8.09% to 7.44%.

In a statement, the IMF said its management determined the weighting based on developments in financial markets and trade activity between 2017 and 2021.

The IMF says its officials are in agreement that neither the COVID-19 pandemic nor advances in the financial technology (fintech) sector have had any major impact on the relative role of money. currency in the SDR basket so far.

Although the value of the yuan has fallen recently, it is still up about 2% against the dollar since 2016 and up about 6% against other major currencies.

In a recent statement, the People’s Bank of China (PBoC or central bank) said that China will continue to push for reform and opening up of its financial markets.