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China’s Yuan Faces Long March to Challenge Dollar After SDR

  • Yuan to be included in IMF’s global reserves basket this week
  • Chinese officials want ‘best of both worlds,’ Invesco says
Images of Chinese Yuan Banknotes As 50% of China Market Now Halted
Photographer: SeongJoon Cho/Bloomberg
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The yuan’s journey toward challenging the dollar as a global reserve currency is only just beginning.

The yuan will join the International Monetary Fund’s Special Drawing Rights this Saturday, marking a milestone in China’s efforts to build a currency that reflects the country’s economic and political sway. The SDR, created in 1969, gives IMF member countries who hold it the potential right to obtain any of the currencies in the basket -- currently the dollar, euro, yen and pound -- to meet balance-of-payments needs.