Baku. 27 October. REPORT.AZ/ Chinese currency yuan is likely to become a reserve currency of International Monetary Fund (IMF).Report informs referring to the Bloomberg agency, the decision could be taken at a special meeting of the IMF next month.
The previous meeting was held in 2010, when the IMF agreed that yuan does not meet the definition of a freely convertible currency. According to three anonymous sources, yuan is expected to enter in the currency basket of Special Drawing Rights (SDR).
Currently the IMF's currency basket composed of the US dollar, euro, yen and pound sterling. According to the information, decision-makers in China are already preparing for the congratulations in anticipation of a positive decision.
Standard Chartered Bank is headquartered in London and AXA Investments Managers headquartered in Frankfurt predicted that if yuan joins SDR basket, at least 1 trillion USD will be kept in yuan in international reserves.
According to Report's analyst group, after the entry of the yuan to SDR basket, many countries will want to convert some of their dollar reserves into yuan.This will increase the demand for the yuan, and can lead to short-term weakening of US dollar against major currencies.