New | More financial reforms in store after IMF verdict, PBOC deputy governor pledges
PBOC said it remains important to reinforce the yuan’s inclusion in the IMF reserve currency basket
China will press ahead with financial and capital account reforms after the yuan’s inclusion in an elite currency club held by the International Monetary Fund, People’s Bank of China deputy governer Yi Gang has pledged.
“The [Special Drawing Rights] basket is reviewed every five years. Any currency can be included when criteria are met. Likewise, it can also be excluded when the conditions are no longer met,” Yi said in a press briefing on Tuesday morning.
The IMF approved the yuan, also known as renminbi, to be the fifth currency in the SDR basket, a quasi-currency that functions as an account unit of the IMF, as well as claims and denomination of IMF credits to member countries.
“We have to bear in mind that we need to keep reforming and opening up, so the yuan’s status in the SDR basket can be reinforced,” Yi said.
“We will do more work to complete the foreign exchange mechanism... and increase product offerings in the capital market, providing more hedging tools to make our markets deeper and broader,” he added.
