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Progress for Reform as Yuan Inches toward SDR

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The financial system is benefiting from the government's campaign for China's currency to become part of an IMF supplementary reserve asset The recent adjustment to the system for setting the yuan-foreign currency exchange rate added an unexpected twist to China's bid for the yuan's inclusion in the International Monetary Fund's basket of Special Drawing Rights (SDR) currencies. The IMF quickly welcomed the adjustment, issuing a supportive statement one day after the People's Bank of China announced that daily fixing rates for the yuan would be linked to the currency's value at the close of the previous trading on China's interbank foreign exchange market. Just a week earlier, the fund had...

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