Bundesbank Sees IMF Decision as Key to Yuan as Reserve Currency

The International Monetary Fund holds the key to the Chinese yuan becoming an international reserve currency through a review of its Special Drawing Rights basket, according to Bundesbank board member Joachim Nagel.

“If the renminbi will be included in the IMF’s SDR basket, every IMF member is indirectly invested in renminbi,” he said in an interview, referring to the currency’s official name. “This will increase the probability of holding renminbi as a reserve currency in general. If you’re already exposed to something, then the decision to broaden your exposure is an easier one to take.”