The SDR is the Catalyst for China’s Currency Internationalization
On November 30, the IMF announced its final decision to add the Renminbi (or RMB, the Yuan is the unit of account), China’s currency, to its reserve currency basket. So now that basket, the SDR (for Special Drawing Rights) includes the USD, Euro, British Pound, Japanese Yen, and the Yuan. The Yuan’s weight in the basket is 10.92%, lower than that of the USD (41.73%) and Euro (30.9%), but higher than that of the Japanese Yen (8.33%) and British Pound (8.09%). The addition of the Chinese Yuan will take effect next October.