China’s Yuan Joins IMF Reserves in First Revision Since 1999
- Authorities will keep yuan stable to avoid hurting image: OCBC
- IMF’s Lagarde says inclusion reflects progress made by China
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The yuan took on the mantle of a global reserve currency Saturday, a milestone that is seen breathing life into China’s bond markets by prompting estimated inflows of as much as $1 trillion over the next five years.
The currency’s entry into the International Monetary Fund’s Special Drawing Rights -- alongside the dollar, euro, pound and the yen -- comes amid China’s efforts to boost its international usage and ambitions of providing an alternative to the dollar. Describing the inclusion as a “historic milestone,” IMF Managing Director Christine Lagarde said in a statement Friday that it reflects the progress that the Asian country has made in reforming its financial systems and liberalizing markets.