The Yuan Now Part of IMFs SDR: Who Cares?

On Monday November 30, 2015, the International Monetary Fund (IMF) agreed to add the Chinese yuan to its reserve currency basket. Lately, the United States and the IMF had supported its inclusion in the basket, known as Special Drawing Rights (SDR). The yuan will join the euro, yen, pound and dollar in the reserves basket. The yuan will have about an 11 percent weighting in the SDR. The assumption is that this will increase the demand for the yuan. This is funny because the SDR is not a...