US expert: it was very likely that the RMB will become the fifth currency in SDR basket

The International Monetary Fund (IMF) executive board plans to discuss and decide in November whether to include the Chinese currency, the RMB, into its special drawing right (SDR) currency basket.

In view of China’s recent financial market reforms and the internationalization of the RMB, an expert from a Washington based think tank, believed it was very likely that the RMB would become the fifth currency in the SDR basket.

SOUNDBITE(ENGLISH): NICHOLAS LARDY, Peterson Institute for Int’l Economics
“I am of the view that there is a very high probability that RMB will be included in the basket. Originally the vote on this by the executive board of the fund was scheduled for Nov.4, my understanding now is that has been delayed by a few weeks because the fund has prepared a second report going into some of the details like I just mentioned about how things have been changed since the last report of RMB was issued. And the members of the executive board needs time to study that report so I think the vote would probably come a few weeks after the original date. But I think they at least now are still firmly committed to making a decision on this before the end of the year.”

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