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Page added on November 16, 2015
China welcomes IMF backing to make yuan world reserve currency
China on Saturday welcomed backing from IMF experts that the yuan should be included in its reserve currencies, saying the move would strengthen the world’s financial system.
Now the world’s second-largest economy, China asked last year for the yuan to be added to the elite basket of SDR currencies, but until recently it was considered too tightly controlled to qualify.
It now looks likely the yuan will be formally admitted to the IMF’s “special drawing rights” currency basket at the end of the month, which would mark a milestone in China’s efforts to become a global economic power.
IMF chief Christine Lagarde said the fund now deemed the yuan “meets the requirements to be a ‘freely usable’ currency” — a key hurdle to joining the yen, dollar, pound and euro as a leading unit in international trade.
The yuan hit headlines in August when China’s central bank devalued the currency and said it would use a more market-oriented system to calculate the point around which the currency can trade each day.
The move sent markets into a tailspin as investors took it as a sign of slowing growth in China, a key driver of the world economy, but the central bank on Saturday said such reforms had taken it closer to joining the SDR basket.
“China thinks that the inclusion of the RMB (yuan) into the SDR basket will strengthen the representativeness and the attraction of the SDR (and) that it will improve the existing international monetary system,” the People’s Bank of China (PBoC) added.
“It will have win-win benefits both for China and the world.”
– Yuan’s rapid rise –
The yuan has rapidly grown in importance in recent years as China — the world’s top trading nation — has used it to settle more of its commerce, and made it directly convertable with more currencies.
Including the Chinese currency in the SDR would likely boost demand for yuan-denominated assets among central banks, and give it a sheen of respectability at a time when many investors are questioning Beijing’s ability to manage the slowing economy.
Lagarde said IMF experts ruled Beijing had addressed “all remaining operational issues” required for SDR inclusion, which will be decided by the executive board at a November 30 meeting.
“I support the staff’s findings,” she said, adding to expectations that the board will also back the yuan.
That would mark an about turn from the beginning of August — before the yuan devaluation — when the Fund said the currency was not freely usable enough to be included in the basket.
Despite the recent misgivings, there has been strong pressure for the IMF to act now as the SDR basket is only reviewed every five years.
If a decision to include the yuan is made this month, the actual inclusion could take place as late as September 30, 2016, giving Beijing more time to prepare.
The recommendation Friday was broadly backed by the United States, China’s main rival for world economic supremacy.
“We intend to support the renminbi’s inclusion in the Special Drawing Rights basket provided the currency meets the International Monetary Fund’s existing criteria,” the Treasury Department said, using another name for the yuan.
“We will review the IMF’s paper in that light.”
15 Comments on "China welcomes IMF backing to make yuan world reserve currency"
makati1 on Tue, 17th Nov 2015 1:24 am
Another step up for Asia and another step down for the West. The IMF is being replaced slowly. As is the World Bank. Both run by the US. All they have to do is wait for the US to implode by it’s own actions and the flight from the dollar will make that from 3rd world countries look like a trickle. Wait and see.
Rodster on Tue, 17th Nov 2015 3:02 am
“Another step up for Asia and another step down for the West. The IMF is being replaced slowly. ”
Umm, you need to re-read the story because you got it backwards. And it’s quite fitting that two crooks decide to enlarge the money party. And just in case you didn’t get the memo, the Russian finance minister admitted that the BRICS banking system was designed to compliment the western system. In other words it’s like Pizza Hut and Taco Bell both owned by Yum Brands.
Rodster on Tue, 17th Nov 2015 3:10 am
If anything this just means TPTB are marching the Sheeple towards a “one world currency” followed by a “one world government”. And the only losers in the game are you, me and everyone else. While the eastern and western banksters are literally laughing their asses of all the way to the bank.
In summary Banksters 1, Sheeple 0.
Davy on Tue, 17th Nov 2015 4:20 am
I am with Rodster this is a coordinated effort by bankster east and west to integrate for more control. There is nowhere to go now. The Chinese are gaining some bragging rights and the ability to devalue with less chance of a corresponding debilitating capital flight. The west gets more control over China with club membership. This is just an end game. The question is how long can the game last? Clubs work when everyone is happy not when the ship is sinking.
JuanP on Tue, 17th Nov 2015 6:09 am
Western financial institutions such as the IMF, World Bank, IBS, Visa, SWIFT, etc. are being used by the USA and other NATO nations as economic weapons against countries that resist American interference abroad. Because of this, they are becoming a liability to most other countries and the international community is creating alternative and complimentary financial institutions of their own.
After the creation of the BRICS bank and the AIIB, the IMF is no longer the go to bank for most of humanity now. The IMF was forced to accept the Yuan, if it hadn’t done so it would have become increasingly irrelevant.
Davy on Tue, 17th Nov 2015 6:45 am
Juan said “After the creation of the BRICS bank and the AIIB, the IMF is no longer the go to bank for most of humanity now. The IMF was forced to accept the Yuan, if it hadn’t done so it would have become increasingly irrelevant.”
Juan, I did a little research and I am seeing nothing to indicate a take-off of the much hyped Bric bank IOW it is showing indications of being a dud especially since every single one of the brics is in deep economic difficulties.
I have read nothing that would suggest the IMF was forced into accepting the Yuan. This inclusion of the Yuan is good for both sides. China is in an economic free fall (disguised and repressed). If there was a forcing it was to assist the global system’s second biggest economy and not a forcing by a China in a position of strength. This assistance allows China to cover some of its devaluation without uncontrolled capital flight. Capital flight (loss of confidence) is a real danger for China now. The inclusion into the IMF will head off some but not all of that dangerous capital flight.
Rodster on Tue, 17th Nov 2015 7:38 am
“After the creation of the BRICS bank and the AIIB, the IMF is no longer the go to bank for most of humanity now. The IMF was forced to accept the Yuan,”
Another one who came to the wrong conclusion. The BRCIS and AIIB are different storefronts for the same masters. The jokes on you, just like Pizza Hut and Taco Bell are owned by the same company. In case you need a reminder !
————————————————-
BRICS bank to complement Washington-based development institutions – Russian Presidential aide
https://www.rt.com/business/261241-brics-bank-institutions-complement/?utm_source=browser&utm_medium=aplication_chrome&utm_campaign=chrome
Rodster on Tue, 17th Nov 2015 7:52 am
ANYONE, who cheers this shit on needs to have his/her head examined. There are NO winners except the Banksters. Humans are the losers around the world.
Let me paint you a possible scenario.
There’s already an assault on weapons around the world. There’s now an assault on cash taking place in Europe with the US to follow. Eventually ALL cash will be banned. You are either in the system or you are OUT. It’ll be either or.
The Banksters along with the Govt’s around the world will design a NEW currency much like the EURO which can be used anywhere in the world. A ban on cash will take place.
If the Banksters decide they need to spur the eCONomy and you are not willing to do your part, they will STEAL money from your account until you start spending. If you decide to buck the SYSTEM they can SHUT YOU DOWN. You won’t be able to buy or sell anything, just like the US freezes Bank assets of Countries it disagrees with…. Think “Mark Of The Beast”.
Once the new money system is in place all the world leaders will come together and have a Koombyah moment and declare they want to have a one world government.
The One World Government has been a “wet dream” form the likes of Ted Turner, George Soros, Bill Gates, Henry Kissinger and the other Billionaires.
They are tweaking, massaging, herding and conditioning the masses for this eventual outcome. When it’s all down and they have a lock on the global money supply and one government, they can do whatever the HELL they want.
If they deem that 7.2B are too much in the world, they can bring it down to whatever playful number they decide is best for the world. You can’t survive because they will take your money away if they so desire. You can’t flee to another Country because it’s the SAME government where you want to go.
Think it through PEEPS, the only losers in this is us. The only winners are them. The Russians, Chinese, United States, France, England and everyone of the powerful countries are all in on the same game.
Think this is all bullshit? Henry Kissinger is known to be tight buds with Putin.
Davy on Tue, 17th Nov 2015 8:51 am
Rodster, here is some follow up for your comment:
“What Wall Street’s Return to Central Banking May Mean for Policy”
http://www.bloomberg.com/news/articles/2015-11-17/what-wall-street-s-return-to-central-banking-may-mean-for-policy
Rodster on Tue, 17th Nov 2015 9:45 am
Thanks for that link. Everyone is in on the same CON-game from West to East including the Russians and Chinese.
GregT on Tue, 17th Nov 2015 10:23 am
The CON game isn’t being played by countries. Countries are being played by the CON artists.
The world has been hijacked by a power-hungry satanic sumerian religious order. They control the entire international finances scene and thus monolithically own the media and the politicians around the globe. They seize real property by shrinking and expanding the money supply and exploiting the discounted foreclosure auctions, they purchase on the peak of deflation everything that produces profit and receive interest from all the money, as money is debt. Those people are usurpers that spread corruption, deception, disgrace, manipulation and false values and systematically humiliate, rape, torture and murder children.
Mihhail Veingold
Rodster on Tue, 17th Nov 2015 2:58 pm
As I’ve said on other occasions that nothing really will change even with the IMF-SDR. It’s still a FIAT backstop currency that’s made up of other FIAT currencies.
Boat on Tue, 17th Nov 2015 4:05 pm
GregT,
If you believe that crap your even more unhinged than I thought.
GregT on Tue, 17th Nov 2015 6:20 pm
Your not capable of rational thought Boat. Your an idiot.
makati1 on Tue, 17th Nov 2015 7:59 pm
JuanP and GregT, you are both correct. But the deluded do not see it that way. Too bad for them. As I said, the West is sliding into the shitter and the Eastern hand is hovering over the lever.