Business / Economy

IMF move to include yuan in SDR still on track

By Chen Jia ( Updated: 2015-08-06 11:01

A move to include the yuan in the International Monetary Fund's Special Drawing Rights is still on track, despite sections of the Chinese media saying it had been derailed.

Online Chinese reports started to circulate that the yuan would be denied entry into the SDR basket of currencies until next year after a Bloomberg article was misinterpreted in translation.

An internal IMF report revealed that a decision on the yuan will go ahead later this year as planned. But if it is successful, an actual date of inclusion may be extended to September 30, 2016, due to technical reasons.

"The proposed extension, which will be decided by the IMF executive board later this month, would not in any way prejudge the timing, conclusion or outcome of the review," Siddharth Tiwari, director of the IMF's Strategy, Policy, and Review Department, said

Wang Tao, chief economist in China at UBS AG, felt that "it was highly likely that the yuan will be included". But she added: "Through technical reasons, the actual date of inclusion may be extended to September 30, 2016, to give reserve managers time to adjust.

"In fact, the IMF implies there is every likelihood of SDR inclusion – otherwise the technical preparation would not be necessary," Wang added.

The Chinese government is seeking to expand the use of the yuan by having it included in the SDR, an international reserve asset that is comprised of four currencies: the dollar, euro, pound and yen.

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