Tuesday, December 01, 2015

China's Yuan Now Globally Leading Currency

人民币加入SDR 在SDR货币篮子中的权重为10.92%

The Renminbi [or: Yuan] is entering the SDR, making up for
10.92% of the SDR currency basket's weight [of influence].

The Chinese article also mentions the weight of other globally leading currencies included in the SDR basket: U.S. $ (41.73%), Euro (30.93%), Japanese Yen (8.33%) and English Pound (8.09%). The addition of China's currency to the SDR basket is to take effect on 1st October 2016.

[Source: People's Network 人民网 on 1st December 2015]

The following text is a quotation from U.S. broadcaster CNBC as published on their website under the title IMF agrees to include China's RMB in benchmark SDR currency basket :

On Monday, November 30, the International Monetary Fund IMF agreed to add the Chinese yuan to its reserve currency basket.

The decision — which marks another step in China's global economic emergence — came after the IMF evaluated the Asian nation's standing as an exporter and the yuan's role as a "freely usable" currency. In a statement, IMF Managing Director Christine Lagarde noted the yuan's inclusion is a "clear representation of the reforms" taking place in China.

Lagarde and the United States had supported its inclusion in the basket, known as Special Drawing Rights (SDR). It will join the euro, yen, pound and dollar in the reserves basket. The yuan will have about an 11 percent weighting in the SDR. The addition of the yuan, or renminbi, will take effect next October.

[Illustration for a Chinese language article of DW on 1st December 2015]


Editor's Remarks:
A visitor to "blueprint news", coming from the Jurong community of Singapore, reminds me of my own visit to Jurong Bird Aviary and nearby Bukit Timah Natural Reserve. The experience of that "giant bird cage" with lots of colourful birds moving freely and fearlessly around me stayed in my memory as well as the experience of Bukit Timah Hill where I met with a foggy rainforest from where the mysterious sounds of birds and monkeys emerged. It must be added that this was a time when the Jurong area had still preserved its rural character and when even the centre of Singapore was marked by an old Chinatown, full of unexpected corners, where the demolition hammer had only just begun to make room for future skyscapers and office buildings. I still remember the "mortuaries" in a busy street of that Chinatown, each occupied by a few dying persons, lying in their shop-like caves open to the street, thus participating at the daily lives of their neighbours until the last moment of their existence. I even encountered some funeral party where they were sumptuously feasting and burning hell money in order to impress the divine authorities and such ensure a comfortable place in Heaven and VIP treatment for the deceased. Coming from a Western society that usually rejects any thought of death and after-live, this became a rather impressive experience for me. By the way, it was just "mooncake festival" at the time of my visit, and I had to learn that such cakes are not intended for immediate eating (not even by hungry tourists !) but are dedicated to somebody as a present, the person's esteem rising with the number of mooncakes he can collect.

Traditional Chinese "Hell Banknote" from the "Underworld Bank"
with a nominal value of 10.000 Dollars.

Modern "Hell Banknote" from the "Underworld People's Bank of China"
[中国冥民银行] with a nominal value of 500.000 Yuan / Renminbi.

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