IMF Launches New SDR Basket Including Chinese Renminbi

China has made it into the global crony big leagues.

Today, the International Monetary Fund announced the launch of the new Special Drawing Right (SDR) valuation basket including the Chinese renminbi.

As approved by the Executive Board of the IMF on November 30, 2015, effective October 1, 2016, the RMB is determined to be a freely usable currency and will be included in the SDR basket as a fifth currency, along with the U.S. dollar, the euro, Japanese yen, and the British pound.

 The Board also decided at that time that the weights of each currency would be 41.73 percent for the U.S. dollar, 30.93 percent for the Euro, 10.92 percent for the Chinese yuan, 8.33 percent for the Japanese yen, and 8.09 percent for the Pound sterling.

-RW