IMF Opens Door to Adding Currencies to SDR Basket After Yuan
- Fund staff say other currencies may meet `freely usable' test
- Next IMF review of currency basket to take place in 2021
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The International Monetary Fund said currencies beyond the dollar, euro, pound and yen may meet the same key threshold as the Chinese yuan did to qualify for inclusion in the lender’s basket of reserve currencies.
The IMF’s executive board this week approved the inclusion of the yuan in the fund’s Special Drawing Rights basket, alongside the currencies of the U.S, euro area, the U.K. and Japan. The change will take effect Oct. 1, 2016.