China’s Renminbi Is Approved as a Main World Currency
- 8 years ago
The International Monetary Fund on Monday approved the Chinese renminbi as one of the world's main central bank reserve currencies, a major acknowledgment of the country's rising financial and economic heft.
The I.M.F. decision will help pave the way for broader use of the renminbi in trade and finance, securing China's standing as a global economic power.
The changes could inject volatility into the Chinese economy, since large flows of money surge into the country and recede based on its prospects.
The decision to include the renminbi "is an important milestone in the integration of the Chinese economy into the global financial system," Christine Lagarde, the managing director of the I.M.F., said in a statement.
China's leadership has made it a priority to join this group of currencies, naming it in October as one of its highest economic policy priorities in the coming years.
The I.M.F. decision will help pave the way for broader use of the renminbi in trade and finance, securing China's standing as a global economic power.
The changes could inject volatility into the Chinese economy, since large flows of money surge into the country and recede based on its prospects.
The decision to include the renminbi "is an important milestone in the integration of the Chinese economy into the global financial system," Christine Lagarde, the managing director of the I.M.F., said in a statement.
China's leadership has made it a priority to join this group of currencies, naming it in October as one of its highest economic policy priorities in the coming years.