8. RMB'S INCLUSION IN SDR SUPPLEMENTS INT'L MONETARY SYSTEM
On Oct. 1, the Renminbi (RMB, Chinese yuan) joined the International Monetary Fund (IMF)'s Special Drawing Rights (SDR) basket, a supplement to a shortfall of preferred foreign exchange reserve assets, namely gold and the U.S. dollar.
Among the five currencies in the basket, the RMB is the only currency from a newly-emerged economy, with a weight of 10.92 percent just after the U.S. dollar and the euro, but before the Japanese yen and the British pound.
The RMB's inclusion in the SDR basket is a milestone in the RMB's internationalization journey, and shows the world's acceptance of China's economic development and financial reform.
The inclusion also supplements the international monetary system, and helps protect global financial stability.
