
China's yuan takes leap toward joining IMF currency basket - walterbell
http://www.reuters.com/article/2015/11/14/us-imf-china-yuan-idUSKCN0T22OC20151114#cwmVVRkYhB44kFLF.97
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chollida1
Kind of irrelevant at this point, just like the SDR basket itself.

I mean international finance and more specifically the IMF, isn't my area of
expertise but just spend 10 minutes reading this:

[https://en.wikipedia.org/wiki/Special_drawing_rights](https://en.wikipedia.org/wiki/Special_drawing_rights)

> The IMF itself calls the current role of the XDR "insignificant". Developed
> countries, who hold the greatest number of XDRs, are unlikely to use them
> for any purpose. The only actual users of XDRs may be those developing
> countries that see them as "a rather cheap line of credit".

The Yuan might be included in a basket of currencies that is all but
irrelevant to everyone, including the IMF, the creator of said basket.

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Analemma_
I thought the IMF had made it clear that the yuan could never join the SDR
basket as long as China kept currency controls in place. The article says the
IMF's analysts have suddenly decided that the yuan is "freely usable", and it
does mention other liberalizations that China has done, but there is nothing
about whether capital controls were loosened. Did China adjust its policy
here, or is the IMF lowering its standards due to Chinese pressure, or was I
mistaken all along that currency controls were a no-go?

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marme
china has some of the most strict currency controls in the world and actively
manipulates the exchange rate of their currency to help boost exports. if the
IMF allows the RMB to join the SDR basket it will make it a joke. I am sure
there is serious political pressure and bribery going on to make this happen

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Asbostos
Currency controls yes, strict no. It's a sieve. Most countries actively
manipulate their exchange rates to help boost exports. That's normal. They do
it by adjusting interest rates and setting various policies.

