| According to Reuters news agency, the Group of Seven (G7) Finance Summit has formally agreed on May 29 that they would permit the RMB currency to be included in the ‘Special Drawing Rights’ (SDR) currency basket after a technical review is conducted by the International Monetary Fund (IMF). Beijing believes that the RMB has made tremendous progress and deserves to join the SDR. Nonetheless, the IMF technical review could still cause delays.
Critics claim that China’s capital account is not completely open and the RMB is not fully-convertible, which would impact the formation mechanism of the RMB exchange rate market. Yet, those concerns should not be direct obstacles to RMB’s inclusion in the SDR. How will the IMF determine if the RMB should receive SDR status?..............................................Full Article: Source
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