New issue a landmark for Special Drawing Rights

The issuance of bonds denominated in Special Drawing Rights for the first time in China is a good starting point for promoting the expansion of SDR use among the G20 members, analysts said.

The SDR-denominated bonds to be settled in renminbi, which the World Bank began issuing on Wednesday, are "a landmark move" for China's bond market and for the SDR as an international reserve asset, according to World Bank President Jim Yong Kim.

He said the World Bank's issuance of SDR bonds in China will support the G20's objective of expanding the use of the SDR, which has been listed as one of the G20's key financial tasks by the G20 International Financial Architecture Working Group.