China's yuan to join IMF currency basket – sources

[webfact]

China's yuan to join IMF currency basket – sources



NEW YORK: -- The Chinese yuan is set to be included in the IMF’s benchmark currency basket, according to reports.

Sources say a draft report by International Monetary Fund staff recommends such a move, which would pave the way for a favourable decision by policymakers.

The IMF’s executive board is scheduled to decide in November on whether to put the yuan on a par with the dollar, the yen, the euro and the pound.

China has launched a series of reforms recently designed to liberalise markets and help its currency reach the necessary criteria.

Beijing wants to reduce its dependence on the dollar and for the yuan to make its own mark globally.


-- (c) Copyright Euronews 2015-10-27

[Whyamiandwhatamidoinghere]

Where are all the thaivisa rocket scientist's opinions on this? Easier to comment and bash men getting divorced from their Thai wives then to have an intellectual conversation on the significance of this move by China.

Edited October 26, 2015 by Whyamiandwhatamidoinghere

[AlexRRR]

Im just a humble builder....i have no idea how significant this would be but it stands to reason as China will be the future economic power broker there yuan has to be included, and while the IMF are at it they can delete the pound and yen.

[ExpatOilWorker]

I have also just won a gazillion dollars in a Nigerian lottery according to a source familiar with the matter.

Who are spoon feeding the news agencies this news and why are they so eager to report it?

Lets wait for the official announcement from IMF in November shall we.

[Whyamiandwhatamidoinghere]

Fear is the perpetrator.

[shirtless]

Its quite simple America is a spent force , which can no longer be trusted , gfc etc

[terryp]

been planned for years thats why China has been buying so many tons of Gold to back the Yuan ..whatever people may think China is in control for the next 2,000 years...Egypt, Roman, Great Britain/US now China..its the Age of Aquarius (all connected ..this is also why Christianity is dying as the Age of Pisces is almost over... the scary thing is that Issslam is next to take over)

[Whyamiandwhatamidoinghere]

Everyone and their mama knows China wants the yuan to be the reserve currency. They have been trying to lay the foundation for this by creating their own monetary bank and having other countries to join. Trade pacts with countries encouraging usage of the yuan. Being included in the imf is an important step towards their agenda. A constant drip of water can break thru rock.

[otherstuff1957]

Won't the Chinese have to let the Yuan 'float' to its market value if they do this? Most people think that the Yuan is artificially undervalued and will go up considerably if it is allowed to float.

If China does this there will be winners and losers:

Chinese tourists going abroad and Chinese oil importers will be winners and...

Chinese factories that rely on exports will be losers.

I suspect that the Yuan will join this basket of currencies only if they can still keep the Yuan undervalued.

[godden]

I have also just won a gazillion dollars in a Nigerian lottery according to a source familiar with the matter.

Who are spoon feeding the news agencies this news and why are they so eager to report it?

Lets wait for the official announcement from IMF in November shall we.

only a gazillion i won a googleplex

[ExpatOilWorker]

Won't the Chinese have to let the Yuan 'float' to its market value if they do this? Most people think that the Yuan is artificially undervalued and will go up considerably if it is allowed to float.

If China does this there will be winners and losers:

Chinese tourists going abroad and Chinese oil importers will be winners and...

Chinese factories that rely on exports will be losers.

I suspect that the Yuan will join this basket of currencies only if they can still keep the Yuan undervalued.

Not only do they need to let the Yuan float, but also open the whole banking system up to international banks and free cross border trading. I am sure the list of requirements is a lot longer, honest and accurate GDP reporting spring to mind.

[ggt]

The Chinese Yuan joining the IMF currency basket is a very big deal for China...

This is just another step in the Chinese plan for domination on the world scene...the US is toast...the dollar is being propped up by falsifying economic figures, zero interest rates and money printing...the US economy is anemic at best...China has kept the world economies afloat for the past few years...

Even England is courting the Chinese...for future trade alignment...

Arguably the only folks that can not see the decline of US influence in the world...are the leaders of the US...they will be shocked one day...when countries they have had in their back pocket for years...switch loyalties to China...

[wombat]

yuan backed by gold is the next step...look at how much physical gold China has been buying...coupled with there alliance with Russia in Syria to assure gas and oil supplies, its by by USA $ as the benchmark..imho.

[Baerboxer]

Im just a humble builder....i have no idea how significant this would be but it stands to reason as China will be the future economic power broker there yuan has to be included, and while the IMF are at it they can delete the pound and yen.

Hope your're a better builder! Delete the pond and yen? And keep the soon to die Euro?

It's called a basket of currencies for a reason.

[Baerboxer]

The Chinese Yuan joining the IMF currency basket is a very big deal for China...

This is just another step in the Chinese plan for domination on the world scene...the US is toast...the dollar is being propped up by falsifying economic figures, zero interest rates and money printing...the US economy is anemic at best...China has kept the world economies afloat for the past few years...

Even England is courting the Chinese...for future trade alignment...

Arguably the only folks that can not see the decline of US influence in the world...are the leaders of the US...they will be shocked one day...when countries they have had in their back pocket for years...switch loyalties to China...

UK courting China, not England.

[Krataiboy]

The IMF’s executive board is scheduled to decide in November on whether to put the yuan on a par with the dollar, the yen, the euro and the pound.

Why not? They are all fiat currencies not worth the value of the paper they are printed on. Another basket case for the basket.

[Rancid]

Remains to be seen, is China joining the banker club with more influence or will they push ahead to usurp the slowly waning US hegemony.

Probably won't affect most of us that much, as what difference does it make which master has their foot on your throat?

Either way the trend in wealth disparity is moving back to feudalism.

[elgordo38]

Where are all the thaivisa rocket scientist's opinions on this? Easier to comment and bash men getting divorced from their Thai wives then to have an intellectual conversation on the significance of this move by China.

Your the first to comment on this subject so give them a chance. They are dusting off their copies of "Rocket Science for Dummies" and will be joining the fray shortly. China has aspirations of power and will continue to flex their muscles. With the increasing and alarming debt accumulating in the West they smell blood. The world seems to be polarizing into an East vs West bloc. The Chinese are moving ahead with their Silk Road project. It will be a land route to move goods from Europe to Asia fast. Thus they can circumvent the oceans of the world that are patrolled by nations with strong navies. They are already doing currency swap deals with the likes of Russia, Iran and other Asian/Arab countries and also setting up a precious metals bank. This is the price the west must pay for signing trade deals with a country that has no human rights and does not believe in trade deals and they are only considered a means to an end. Just look at all the air and water pollution there. They have pulled out all the stops to ship their cheap junk around the planet and of course we buy it. They are also laying claim to disputed islands and turning them into armed fortresses. They are using their fortunes that they accumulated over the decades by selling the west their troublesome but cheap goods. Another example look at Ecuador a country where they have made large investments based on Ecuador's oil reserves which are well not worth as much as they were a couple of years ago. They now have a financial stranglehold on the country who though they saw Santa Claus coming. 2016 could be a year of reckoning when all the pigeons will come home to roost.

[elgordo38]

been planned for years thats why China has been buying so many tons of Gold to back the Yuan ..whatever people may think China is in control for the next 2,000 years...Egypt, Roman, Great Britain/US now China..its the Age of Aquarius (all connected ..this is also why Christianity is dying as the Age of Pisces is almost over... the scary thing is that Issslam is next to take over)

Not to worry by the time Islam slams the world we will be pushing up daisies.

[elgordo38]

Won't the Chinese have to let the Yuan 'float' to its market value if they do this? Most people think that the Yuan is artificially undervalued and will go up considerably if it is allowed to float.

If China does this there will be winners and losers:

Chinese tourists going abroad and Chinese oil importers will be winners and...

Chinese factories that rely on exports will be losers.

I suspect that the Yuan will join this basket of currencies only if they can still keep the Yuan undervalued.

Not only do they need to let the Yuan float, but also open the whole banking system up to international banks and free cross border trading. I am sure the list of requirements is a lot longer, honest and accurate GDP reporting spring to mind.

China's financial problems seems to rest with the state banks that have trillions invested in all the ghost cities in China. Real estate is in trouble in China and if it backs up it will affect the state banks who are sitting on all of these troubled loans.

[elgordo38]

Im just a humble builder....i have no idea how significant this would be but it stands to reason as China will be the future economic power broker there yuan has to be included, and while the IMF are at it they can delete the pound and yen.

Hope your're a better builder! Delete the pond and yen? And keep the soon to die Euro?

It's called a basket of currencies for a reason.

Methinks some of the patients in the basket are on life support.

[Whyamiandwhatamidoinghere]

Its quite simple America is a spent force , which can no longer be trusted , gfc etc

Yes.

The Roman empire is gone.

The Persian Empire is gone.

The Spanish Empire is gone.

The British Empire is gone.

The American Empire is decadent which is the first sign of on the way out.

I say it is time for a new empire.

I can see it now. The Australian Empire. An empire full of kangaroos and led by galahs.

Haven't you heard Australia will be under water in 25 years and those kangaroos. Edited October 27, 2015 by Whyamiandwhatamidoinghere

[Krataiboy]

The IMF’s executive board is scheduled to decide in November on whether to put the yuan on a par with the dollar, the yen, the euro and the pound.

Why not? They are all fantasy fiat currencies, not even worth the cost of the paper they are printed on. Another basket case for the IMF basket.

[Thaidream]

The Chinese represent a clear and present danger to the World. Because of their huge population and the avarice of the Chinese Communist Party they have to keep their population fairly happy. Their mission is to control as much of the World's resources to include food, oil and water so as to be able to satisfy their countries continued growth. American and Western business whose greed knows no bounds continue to use Chinese labor to produce goods which can be sold in the West at inflated prices with inflated profits. As long as this continues the Chinese government will continue to use its arrogance and trillions of dollars to gain a foothold everywhere. They should never be allowed to join the IMF currency basket and Western business needs to start to disengage from doing business with the Chinese. Thailand is making a huge mistake by playing the Americans off against the Chinese. If it continues no one will need English teachers but Chinese teachers will find work easily. As much as I criticize America for its lack of assistance to its own people- I support the Us Navy in its attempt to engage the Chinese militarily. Better now than later.

[Berkshire]

Its quite simple America is a spent force , which can no longer be trusted , gfc etc

Yes.

The Roman empire is gone.

The Persian Empire is gone.

The Spanish Empire is gone.

The British Empire is gone.

The American Empire is decadent which is the first sign of on the way out.

I say it is time for a new empire.

I can see it now. The Australian Empire. An empire full of kangaroos and led by galahs.

Well that's the question, what will the world look like in a century or two. I believe there are three options:

1. The US retains the title. But can capitalism stay in power with the increasing inequality?

2. The Chinese take over. The communist party calls the shots, the billions of sheep follow. Sheer numbers.

3. The Muslims take over. Sheer numbers AND an uncompromising religious ideology.

If I had my preference, I'd choose a future that was more like Star Trek. But that may take another few hundred years.

[ggt]

The Chinese Yuan joining the IMF currency basket is a very big deal for China...

This is just another step in the Chinese plan for domination on the world scene...the US is toast...the dollar is being propped up by falsifying economic figures, zero interest rates and money printing...the US economy is anemic at best...China has kept the world economies afloat for the past few years...

Even England is courting the Chinese...for future trade alignment...

Arguably the only folks that can not see the decline of US influence in the world...are the leaders of the US...they will be shocked one day...when countries they have had in their back pocket for years...switch loyalties to China...

UK courting China, not England.

Thanks for the heads-up...did a little research and learned a little history...England is only a part of UK...I had always thought they were interchangeable...thanks again!

[Srikcir]

The CCP has been trying to lay the foundation for the yuan as a reserve currency by focusing on BRIC and by creating its own monetary bank and having other countries join. Its trade pacts with countries encourages use of the yuan.

Being included in the IMF is an important step BACKWARDS for their agenda. Until such time that China can sustain a strong domestic economy, it must rely on exports with the G-20 for economic growth. But the price for being included in IMF is transparency. No more two-tier currency system that ignores market currency float.

[Publicus]

First off the IMF is directly and openly violating its own long standing policy and standards by including the currency of a government which does not have an independent central bank. The central bank of the CCP China is the People's Bank of China which is 100% owned and operated by the Chinese Communist Party. It is the Communist Party's Bank of China, i.e., the personal bank of the CCP Boyz of Beijing. The Chinese people themselves get trickled down on after the CCP Boyz have hoarded their take of the new economy.

The always deliberately depreciated yuan has put the global economy into a 20-year-plus imbalance from which it has yet to recover. The imbalance of the yuan vis-a-vis the USDollar but also the euro, yen and the GBP had long ago revived old fashioned mercantilism which Beijing has fed as it created the dog eat dog competition to dominate exports globally.

The currency and trade imbalances have however become too great for the CCP Boyz to pursue. As the CCP China's exports have experienced their inevitable collapse, so now the Boyz are necessarily selling US Treasuries "by the ton" according to Bloomberg but to no effect in the CCP China, or globally, or in the USA. Beijing is gaining nothing by it, neither is the global economy which remains starved of liquidity; the USA gets no negative impact as rates remain at 2% where they have been all year due to the sustained demand for USG bonds.

The yuan had been on track all year to be included in the SDR basket beginning in January, however, the recent shock devaluation of August 11th was upsetting in the extreme to world markets. The present currencies in the basket rarely if ever make such sudden or radical moves as the CCP Boyz in Beijing had ordered their central bank CCP operatives to execute August 11th.

Consequently while the IMF Executive Board which includes the United States will likely give approval of the yuan next month, one shouldn't be surprised if the action might be provisional, to take effect in January 2017 if all is going well, rather than automatically in January next year, 2016, as had originally been planned throughout this year.

Recall also the yuan accounts for 2.7% of global currency trade and less than 2% of global currency reserves. The IMF coming inclusion of the yuan is more of a youse guyz in Beijing with your CCP paper can rub elbows with us big guyz who have the real bucks than it is anything else. USA btw has veto power over the Executive Board's decisions which it is not likely to use in this instance.

[elgordo38]

Quote The central bank of the CCP China is the People's Bank of China which is 100% owned and operated by the Chinese Communist Party. It is the Communist Party's Bank of China, i.e., the personal bank of the CCP Boyz of Beijing. Unquote. I believe CP Bank of China is one of the 3 banks worldwide not controlled by the cabal that controls all the central banks world wide. North Korea and Iran I think are the others. The state banks in China are the ones in big trouble as they have outstanding loans in the trillions to people who built all the dodgy real estate sitting empty in China. Why do (lets choose our term carefully) Capitalist societies do business with China with their terrible record of human abuses and pollution well thats because the real Capitalists pulling the strings of Western governments say using a Star Trek term called "Make it so" These are the one percenters who care less about anything like pollution, abuses, human rights, fairness, liberty and all that other high fallutin crap governments keep espousing to us the confused masses looking for answers. They must show a fair amount of disguised compassion for us or they would never be re-elected to continue to carry on their nefarious ways. The one percenters only worship one God the God of Greed. We poor slobs pay our fair share in income tax(and a premium for being expats in some cases) but look at the beer merger where two giants said "we do" for 104 billion dollars of cheap borrowed money our savings for which we get zero percent interest and they in kind borrow it for almost the same percentage. The banks take a big cut to put the marriage together using our life savings but they do not share it with us. They control 70% of the beer market and their head office is situated in Belgium along with about 50 other grifters who pay a measly 1% income tax. Yes Leona only the poor pay taxes.