The International Monetary Fund on Monday said it adopted a new methodology for calculating the currency amounts in its Special Drawing Rights (SDR), the Fund's unit of account, partly to ensure that China's yuan meets the IMF Board's intended weighting.
The changes will apply to a historic rebalancing of the SDR basket on Oct. 1 to include the yuan for the first time, a step that gives the yuan the prized status of reserve asset and moves it a step closer to becoming a freely usable currency.
The relative amounts of dollars, euros, yen, pounds and yuan to achieve these weightings in the SDR basket will be set on Sept. 30 and will be fixed for five years.
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Source: Reuters
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