The International Monetary Fund is boosting the status of the Chinese currency, the yuan. Officials have decided to include the renminbi in the basket of reserve currencies held by the IMF from October 2016. It's seen as an important milestone in China's integration into the global monetary system.
The yuan will be included in the so-called Special Drawing Rights, or SDR, basket as a fifth currency, along with the U.S. dollar, the euro, the British pound and the Japanese yen. It's a reserve asset used to settle accounts when IMF member nations have a shortfall of foreign exchange.
The yuan will account for more than 10 percent of the basket, ranking third in weight after the dollar and euro. The IMF's move apparently reflects China's large trade figures and wide acceptance in international transactions.
China's central bank welcomed the IMF's decision. They said the move recognizes the country's economic growth and the results of reforms. They said it will improve the existing global currency system and bring a win-win outcome for both China and the rest of the world.
◆yuan （人民）元
◆renminbi 人民元
◆reserve currency 準備通貨
◆reserve asset 準備資産
◆settle account 勘定を清算する、会計を処理する
◆shortfall 不足、資金不足
◆outcome 結果。結末
