IMF Adds China's Currency To SDR Basket

The International Monetary Fund voted Monday to include China's currency in the basket of currencies that make up the international agency's Special Drawing Rights (SDR). The decision is a victory for the Chinese government, which has pushed for the inclusion of the yuan in the basket, as it would confer de facto reserve status on the currency. Since the 1990s, the SDR has consisted of four currencies: the dollar, the euro, the British pound and the yen. In a press conference, IMF Managing Director Christine Lagarde said including the yuan in the basket was an important milestone for China's integration into the global economy. The new basket will launch on Oct. 1, 2016. The IMF said the yuan to have a 10.92% weighting in the basket.