Hello and welcome to the Current Affair's Portal of ExamPundit.in. The Executive Board of the International Monetary Fund on Monday decided to include the Chinese currency, the renminbi (yuan), into its basket of currencies that make up the IMF’s Special Drawing Right (SDR).
The decision was taken during the IMF’s five-yearly review of the basket of currencies.
The continuation and deepening of these efforts will bring about a more robust international monetary and financial system, which in turn will support the growth and stability of China and the global economy, Ms. Lagarde added.
The SDR, created by the IMF in 1969, functions like an international reserve, allowing member countries to draw upon any of the reserve currencies in the basket. At present, these include the dollar, euro, yen, and pound sterling. Following the IMF’s decision, this basket will also include the renminbi from October 1, 2016 onwards.
The International Monetary Fund (IMF)
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