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Just the US dollar, the euro, Japan's yen and the British pound are currently part of this select band.
Earlier this month, IMF head Christine Lagarde backed the yuan's inclusion.
If the decision is made, the yuan is likely to join the basket next year, experts said.
China is the world's second largest economy behind the US, and asked for its currency to become a reserve currency last year.
Concerns about Beijing keeping the yuan artificially low to help exporters is one reason why the currency has previously failed to meet the criteria for reserve currencies set out by the IMF.
However, Chinese officials have a made a concerted effort to build support for the yuan's inclusion, and a recent IMF staff report endorsed such a move.
Initially, the currency's inclusion would be largely a symbolic gesture, analysts said.
A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves.
I want to add this tid bit as another member had brought up the situation in the logistics dealing with Afghanistan .from the same piece
Since Xi announced his One Belt, One Road policy in Kazakhstan in 2013, Pricewaterhouse Coopers in Hong Kong estimates that the state has ploughed more than $250 billion into Silk Road-oriented projects ranging from railways to power plants. Meanwhile, every significant Chinese business player is on board, from telecom equipment giant Huawei to e-commerce monster Alibaba (fresh from itsSingles Day online blockbuster). The Bank of China has already provided a $50 billion credit line for myriad Silk Road-related projects. China’s top cement-maker Anhui Conch is building at least six monster cement plants in Indonesia, Vietnam, and Laos. Work aimed at tying the Asian part of Eurasia together is proceeding at a striking pace. For instance, the China-Laos, China-Thailand, and Jakarta-Bandung railways – contracts worth over $20 billion – are to be completed by Chinese companies before 2020.
With business booming, right now the third industrial revolution in China looks ever more like a mad scramble toward a new form of modernity.
On another front, even though it’s not directly part of China’s new Silk Road planning, don’t forget about the Iran-India-Afghanistan Agreement on Transit and International Transportation Cooperation. This India-Iran project to develop roads, railways, and ports is particularly focused on the Iranian port of Chabahar, which is to be linked by new roads and railways to the Afghan capital Kabul and then to parts of Central Asia.
Why Chabahar? Because this is India’s preferred transit corridor to Central Asia and Russia, as the Khyber Pass in the Afghan-Pakistani borderlands, the country’s traditional linking point for this, remains too volatile. Built by Iran, the transit corridor from Chabahar to Milak on the Iran-Afghanistan border is now ready. By rail, Chabahar will then be connected to the Uzbek border at Termez, which translates into Indian products reaching Central Asia and Russia.
Think of this as the Southern Silk Road, linking South Asia with Central Asia, and in the end, if all goes according to plan, West Asia with China. It is part of a wildly ambitious plan for a North-South Transport Corridor, an India-Iran-Russia joint project launched in 2002 and focused on the development of inter-Asian trade.
originally posted by: kwakakev
One question, why is it ok for America to devalue its currency through quantitative easing and an unrestricted government debt ceiling, but not ok for China?
As for the IMF, they do need to make the organization relevant to the global economy or else what is the point of their existence.
Hong Kong (CNN)China's currency has fallen 3.5% against the dollar in the past two days, setting the currency up for its largest two-day decline in decades.
On Tuesday, the People's Bank of China surprised markets by executing a one-time 2% devaluation of the yuan and changing the way it's traded. The currency's losses mounted Wednesday.
The shock move has rattled financial markets and Republican presidential candidate Donald Trump told CNN that it could be "devastating" for the U.S. economy.
Trump and others say China is purposely weakening the yuan, also known as the renminbi, to lower the cost of its exports.
This has fueled talk of a currency war, where countries use exchange rates to keep their products competitive on global markets.
However, the People's Bank of China says the policy change was made in response to market forces, which will be allowed more control over the currency in the future.
originally posted by: kwakakev
a reply to: Aazadan
I am not upset, but curious as to how these influential economic decisions are made. Are they based on sound scientific principles or is it more of a political football match?
Second, Quantative Easing hasn't resulted in inflation because monetary value isn't inversely proportional to the supply. The velocity of money is just as important, if not more so.