IMF has increased the weight of US Dollars and Chinese Yuan in the SDR Basket.
Wothappen reports that the International Monetary Fund has increased the weighting of the United States dollar and the Chinese yuan during its review of the currencies that make up the valuation of its Special Drawing Rights (SDR) basket, an international reserve asset.
This was disclosed in a post on its website titled, “IMF Executive Board Concludes Quinquennial SDR Valuation Review and Determines New Currency Weights for SDR Valuation Basket”.
The new basket gives the US dollar and the Chinese yuan slightly higher weights, while the British pound, euro, and Japanese yen get lower weights.
The yuan, also known as the renminbi, was added to the basket of currencies in 2016, marking a watershed moment in Beijing’s efforts to internationalize its currency.
The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.