The renminbi deserves SDR recognition

Given that China is now the world's largest exporter and second-largest economy, it is a matter of when, not if, the renminbi will be included in the International Monetary Fund's special drawing rights (SDR) currency basket alongside the dollar, euro, pound and yen. And the IMF's five-yearly SDR review later this year will be a good time to do so.

The renminbi's inclusion would cement its rising reserve currency status, reassure the many investors and companies around the world already actively using it and accelerate investment in the currency.

To qualify, the renminbi needs to be "freely usable", though not necessarily "fully convertible". The yen became fully convertible only in 1980 - two years after the IMF determined it to be freely usable. Similarly, the renminbi could be given SDR status now, while China continues to open up its economy.