The Yomiuri Shimbun The Chinese government must steadily promote financial system reforms, a task needed to ensure the yuan can be “freely usable” for transactions in a manner true to its newly recognized status as an international currency. The International Monetary Fund has decided to add the Chinese currency, also known as the renminbi, to the Special Drawing Rights (SDR) basket, effective in October next year. The SDR is a “virtual currency” scheme by which the IMF allocates drawing rights to each member nation in accordance with its capital contribution ratio. The SDR basket comprises the dollar, euro, yen and pound. If any IMF...
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