In this undated photo, a clerk counts renminbi yuan banknotes in Nantong, East China's Jiangsu province. (PHOTO / IC)
BEIJING – The share of Chinese yuan in the International Monetary Fund's Special Drawing Rights basket has risen from 10.92 percent to 12.28 percent, China's central bank said on its official website Sunday.
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In its latest review, the IMF also raised the US currency's weighting from 41.73 percent to 43.38 percent. Meanwhile, the euro's weighting dropped from 30.93 percent to 29.31 percent. The yen's fell from 8.33 percent to 7.59 percent and the British pound's weighting declined from 8.09 percent to 7.44 percent.
It marks the first SDR review by the IMF since the renminbi formally became the fifth currency in the SDR basket in 2016. The review occurred about one year later than originally scheduled due to the COVID-19 pandemic.
Directors broadly acknowledged the progress made on financial market reforms in China, while calling for additional efforts to further open and deepen the onshore renminbi market.
IMF
At present, Chinese yuan ranks third in terms of the weight in the SDR basket, after the US dollar and the euro.
"Directors broadly acknowledged the progress made on financial market reforms in China, while calling for additional efforts to further open and deepen the onshore renminbi market," the IMF said in a statement.
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The updated basket weights will come into effect on Aug 1, 2022.
China will continue to propel the reform and opening-up of the financial market, creating a better environment for overseas investors, said the PBOC.
The SDR is an international reserve asset supplementing members' official reserves, which can be exchanged among governments for freely usable currencies in times of need.
In 2016, the IMF included the yuan in its SDR basket as a fifth currency, along with the US dollar, the euro, the Japanese yen and the British pound.