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Friday, July 31, 2015
Anbound: IMF right to promote RMB's inclusion in SDR
ANBOUND

Anbound's economist Zhong Wei suggested that there are 5 reasons why IMF has yet to include RMB in SDR currency basket and bailout hook. Firstly SDR’s international position has been continuously declining in the past 40 years; secondly the assessment if a currency can be included in SDR mainly depends on the indicator of its complete usability, which does not include the actions taken by the Chinese government on the stock market. Thirdly, the inclusion of RMB in SDR might spark the interest of other countries; fourthly the Chinese government is more relaxed on the inclusion of RMB in SDR, and fifthly it is not uncommon to see the government taking measures on volatile stock market. Both the Chinese government and IMF have the motivation to promote the inclusion of RMB in SDR.

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