The International Monetary Fund Adds China’s Yuan to Reserve Currency Basket

The International Monetary Fund’s decision to include China’s yuan currency in its special drawing rights basket won’t amount to a whole lot for investors, according to one expert. ‘It’s not like when a stock gets added to the S&P 500, where all of a sudden there are fund managers that need to buy it,’ said Greg Anderson, head of FX strategy at BMO Capital Markets, based in New York. ‘Nobody needs to go out and buy renminbi tomorrow because it was put in the SDR basket - no one buys the SDR basket, but it’s a symbol that the IMF approves of what the reformers have been doing with the currency.’ The yuan’s reserve status puts it on similar footing as the dollar, euro, pound and the Japanese yen, currencies already included in the prestigious basket. But with this, the pressure is on for China to become transparent and allow its currency to trade more freely. ‘The reformers in China have won a big victory,’ Anderson said. ‘I think it is an important step along the path towards what I think everyone wants them to get to eventually, which is a freely traded and floating currency.’ TheStreet’s Scott Gamm has details from New York. Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet

Comments

1. This guy needs some education this stupiduty insanity. China within 5 years will overtake the US as the world main reserve currency.
2. What happened ???
   God used to Bless America so abundantly and then 40 odd years ago America stopped
   asking God for His Blessings to continue to reign ..... and outlawed God from the schools from the public square .......from the justice system.
   
   America has now just entered a VERY dark and Godless place , where even its currency will soon be worthless ..
   
   Repent United States and you will be restored !!!!
3. yeah!!!!!! finally!!!! 中华人民共和国万岁！
4. The USA is doom. The US economy is getting rape this is a historical event happening the US analyst are trying to down play the enormous catastrophic and complete collapse of tje US.
5. What a terrible interview!!! THUMBS DOWN
6. did he say NO BODY BUYS THE SDR??? IS THIS GUY AN IDIOT???
7. The total collapse of america is at hand make sure you are prepared get food and water. You don't want to watch your children starve the US government will not tell you what's coming it's just going to happen.
8. The yuan will soon be the new world currency say goodbye to the US dollar Yahoo. America's rain over the world is just about over.
9. paper dump
10. They didn't have a choice. The Renminbi (Yuan) is already the second most traded currency in the world, after the dollar and before the euro.