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China-IMF talks underway to endorse yuan as global reserve currency
March 12, 2015, 12:12 pm

Including the yuan in the SDR basket would aid China’s attempts to diminish the dollar’s dominance in global trade and finance [Xinhua]

Including the yuan in the SDR basket would aid China’s attempts to diminish the dollar’s dominance in global trade and finance [Xinhua]

China is pushing for the International Monetary Fund to endorse the Chinese yuan as a global reserve currency alongside the dollar and euro.

A senior Chinese central bank official said Thursday that the country is “actively communicating” with the IMF on the possibility of including the yuan, or RMB, in the basket of the Special Drawing Rights (SDRs).

Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance.

“We hope the IMF can fully take into account the progress of RMB internationalization, to include RMB into the basket underlining the SDR in foreseeable, near future,” said Yi Gang, vice governor of the People’s Bank of China.

However, China will be patient until conditions are ripe, Yi said at a press conference on the sidelines of the ongoing annual parliamentary session.

In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves.

SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need.

Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB.

China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries.

To become a currency included in the SDR basket, the trade volume of goods and services behind that currency will be evaluated, the Chinese Central Bank official explained on Thursday, stressing that RMB has no problem in this regard. But he said views are divided on whether the RMB is a freely usable currency.

“No matter whether and when the RMB will be included in the SDR basket, China will push on with its financial sector reform and opening-up,” Yi said.

The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian and Australian dollars to enter the top five world payment currencies in 2014, according to global transaction services organization SWIFT.

China said the yuan has also been used as a reserve currency in some countries and regions.

 

TBP and Agencies

38 Responses to China-IMF talks underway to endorse yuan as global reserve currency

  1. Rick Orser Reply

    March 13, 2015 at 1:40 am

    How can the numbers that China provides be trusted when they are not even a democratic country operating under global standards regarding the “Rule of Law” ?
    We need a democratic World Parliament to make decisions on a global currency if such decisions have any hope of achieving legitimacy. Not by a bunch of Nation States ! Support the call for a democratic World Parliament starting by democratizing the UN – http://en.unpacampaign.org/

    • fanshi Reply

      March 13, 2015 at 7:07 am

      Which numbers you can’t trust? China became the largest trading partner in the world by no accident. Most economic figures can be double-checked and verified because they involve foreign partners. In that regard, yes, China’s numbers can be trusted no less than US or UK numbers.

      It is good to see China rising and providing a challenge to the US monetary dominance thanks to its cozy and dirty relations with theocratic dictatorship of the Gulf. USD is dominant not because the US economy is a viable economy, but because its military and corrupt Congress that is ready to befriend the bloodiest dictatorships. And the US military is used when corrupt dealings fail.

    • are you kidding me? Reply

      March 13, 2015 at 10:35 am

      @rick

      i have rarely seen such overt propaganda dribble in my life. which bankster do you work for? you vehemently distrust china but do not dare to question your own filthy, hijacked terrorist government? the same one that manipulates every market there is. yeah… i’ve seen the USA’s “rule of law” : invade and bomb any country who doesn’t submit to corporate and banker plunder and if they cannot be overthrown by a coup. oh, the one world government, that’s the plan of the bankers isn’t it? great suggestion for all of us indebted and robbed slaves to go and sign on in support. seriously, when the world revolts against the criminals who have taken control of the world, i sure hope they go after you too for so brazenly supporting that evil and psychopathic mob.

      • doucyet Reply

        March 13, 2015 at 2:02 pm

        here here

        • JR Reply

          March 17, 2015 at 12:09 pm

          hear!, hear!

          • rob

            August 17, 2015 at 4:54 am

            Loud n Clear

            Farewell Uncle Sam

      • mycophuk Reply

        June 4, 2015 at 5:31 am

        Better corrupt USA then dictatorial communist China

    • Soren Mitchell Reply

      March 13, 2015 at 3:57 pm

      You trust the US to tell you??? Wow.

    • Mike Reply

      March 13, 2015 at 5:19 pm

      Sure, why trust China when you can trust the corrupt West whose banking system is about to drop through the floor due to it’s gambling addiction and exposure to the derivatives market and the continuing need for QE and taxpayer bailouts?

      I don’t hear your call for democracy in the Western backed dictatorships of Saudi, Qatar, Bahrain etc.

      Now be serious…

      • tuckchristine Reply

        October 19, 2015 at 2:25 am

        We do not have a democracy here in the U.S.A. We are a Republic!!! Why should should the U.S. demand others to be democratic when the U.S. is not a democratic country!!

    • gabe Reply

      March 14, 2015 at 10:14 pm

      and the US is a “democratic” country today?
      I think you starting to get china and the USA confused..

      Both countries are starting to do a 180, and in a few more years, this will become more apparent.

      • tuckchristine Reply

        October 19, 2015 at 2:26 am

        The U.S. of A. is a Republic not a democratic nation!

    • RealAmericanAndAshamed Reply

      April 2, 2015 at 1:43 am

      Jesus Rick, are you that lost in the brainwashing. Absolutely nothing about the US is democratic, NOTHING. We need to be reined in and China / BRICS need to take the lead. Once we are bankrupt, the blood sucker Khazar Bankers will look for another country to use as their world terrorists. Doubt they can penetrate China or Russia. Keep your Propaganda away from the good people trying to better the world

      • tuckchristine Reply

        October 19, 2015 at 2:27 am

        Because the U.S. IS a Republic and not a democracy is why we are failing. The voters are blind to the truth and can’t see past the propaganda they are fed.

    • RealAmericanAndAshamed Reply

      April 2, 2015 at 1:44 am

      Rick, are you that lost in the brainwashing. Absolutely nothing about the US is democratic, NOTHING. We need to be reined in and China / BRICS need to take the lead. Once we are bankrupt, the blood sucker Khazar Bankers will look for another country to use as their world terrorists. Doubt they can penetrate China or Russia. Keep your Propaganda away from the good people trying to better the world

  2. Jon Reply

    March 13, 2015 at 2:51 am

    And you thought inflation was bad now!
    The beginning of the end of the petrodollar system.
    If they do not reset the system with a debt Jubilee, you can expect to lose your pension as well as your freedom.

    • Occasnl Trvlr Reply

      March 13, 2015 at 5:32 pm

      And if “they” do “reset the system” with a debt Jubilee, one is GUARANTEED to lose their pension, as the Jubilee would wipe out all of the debt obligations which underwrite pension schemes.

  3. mzzcleo Reply

    March 14, 2015 at 3:59 pm

    Talk all you want about it but it will never happen for structural financial reasons.You can’t legislate a world currency. China was #2 in currency trade big deal that doesn’t mean millions of people are going to convert their 401ks and bonds into yuan. Wake up and stop being a tool.

  4. James Bolton Reply

    March 14, 2015 at 9:22 pm

    China has been very intelligent about there economic campaign around the world, setting up many financial and economic agreements prior to this attempt.
    The US itself is not in a prime condition to respond, considering debt and a consistently failing dollar.
    We must all keep in mind that there is a bigger scheme at play here and the objective in the long run is Globalism.
    The question is who will dominate that new system. The BRICS group or the EU?US coalition.
    As history goes, it will take much conflict to resolve that issue to include the social and economic destabilization of the US, which is obviously underway.

  5. Arsenio Ramirez Pelayo Reply

    March 15, 2015 at 10:25 am

    Once the U.S. dollar loses it’s status of the world currency, within two weeks, you’ll see a total collapse of the U. S. economy. China holds $2 trillion of dollar reserves and is troubled by the Federal Reserve’s notably loose monetary policy and by Obama’s rapidly rising public debt from 9.9 trillion to 18.3 trillion and 130 trillion of unfunded liabilities. Obama is also printing 80 billion dollars per month to artificially propping up the U.S. economy and the U.S. stock market. Average Americans have seen their wealth decimated, losing millions of jobs and their homes over the course of the last five years. Most economist reports are indication, the destruction of the middle class will continue unabated for years to come. Resulting in a vicious devastation and big change to their way of living. Americans no longer have money (or credit) to spend to prop up the economy, thus more jobs will be lost, leading to more people requiring government assistance for everything from food to shelter. Americans will be dependent on government assistance. This is how Obama can build a socialist United States. We are, on every level, facing a collapse of unprecedented scale. The U.S. cannot print any more money when America loses it’s status of the world reserve currency.

  6. Gold finger Reply

    March 15, 2015 at 7:55 pm

    China is making the big move into the SDR pool, sanctioned by the IMF are they ? I expect this move by China, to eventually be accompanied by other nations throwing their hats into the ring. The U.S. having the “reserve currency” of the world, has certain privileges, which come with that position. Now; with China wanting to share the power, expect many changes forth-coming on a global economic scale. China backs its Yuan with Gold and down goes the U.S. greenback and U.S. influence on the economy of the world. The U.S. has fought both, “tooth and nail” to keep Gold in disfavour with the world – especially, the West to promote the U.S. dollar but China – one of the world’s top procurers of Gold and other precious metals, is onto them and slowly, grasps the opportunity to supplant the U.S., as the world’s most proficient economy therefore, the most powerful economic force. I expect also, that Germany and Russia will hop on the “band wagon” eventually, with their respective, Gold-backed currencies. What a changing world we live in !

  7. donald koontz Reply

    March 16, 2015 at 8:10 am

    most here are spot on, the US is undergoing a massive fraud campaign against its citizens,, lying is a way of life, the president is burning the constitution, he has created his own military (homeland security) miltarized the police, dumbed down education. Of course all is driven by greed of corporations who control our congress, follow the money. We cannot manage our own economy, all is tilted to the super rich. Homeland security is here when the US citizenry wake up and see the fraud and lies. There is already rumbling in the streets, but, with the power TAKEN by government, it will be suppressed, but with blood in the streets, the USA will see another civil war, unless the powers that be create another distraction. Common logic is unknown in our politics,,skewed by being the prostitutes for major money,,there is such a massive difference between the government and small private sector-two different worlds in the same land mass. Do not underestimate the power and guts of the common man, laws are passed with no comprehension of impact that extends beyond shallow minds. It is laughable, except for the upcoming tragedies.

    • tuckchristine Reply

      October 19, 2015 at 2:33 am

      Obama did not create the Homeland Security! Obama is just continuing what the politicians have laid before him. (The Republican Bush and his congress created Homeland Security!) One can’t put the blame on just the president. Can’t even blame Congress completely. It is the voters that keep putting these people in to office. It should never be us against them, especially when both teams have the same coaches aka lobbyists!

  8. Bernard B Reply

    March 24, 2015 at 2:04 pm

    Obama printed all that money? Did you forget our banksters and our elected financially challenged nitwits in congress? Democrats do not want deficits. Republicans do not want deficits. Why do we have deficits? Because the voting public is dumber than a box of rocks.

  9. LastFreeMan Reply

    April 9, 2015 at 1:44 pm

    Don’t ever bet against the USA. Period.

  10. Abel Reply

    April 15, 2015 at 11:27 am

    Don’t ever bet against GOD!!

  11. eduardo aquino Reply

    May 9, 2015 at 10:46 pm

    This beautiful country of us (USA) is trying to ovoid the inevitable, BANKRRUPCY.
    The sooner we do it the sooner we can start building a cleaner future, a 1000% better goberment.A true democracy.
    A powerful economy, we got it all to do it, nobody, none can stop us.
    Viva America The Beautiful.

  12. CT CHEONG Reply

    May 15, 2015 at 9:23 am

    Currency which is money as it is currently being used n traded has to b fairly backed by something that is universally accepted as of generic & intrinsic value by itself n must b readily acceptable to all trading nations as such.Legalised or unilateral government-sanctioned of simplistic printing of fiat-paper currencies as money based on nothing of value will not b able to impart financial stability n economic fairness to all parties involved except those with vested interest. Pls do not penalise the WHOLE for the sake of a certain Parts with vested interest in this man-made financial fiasco that has global repercussion!!! It is a basic human aspiration to wish to evolve materially n spiritually whether democratic or not.

  13. rose Reply

    June 9, 2015 at 8:10 pm

    the imf can go to freaking hell and should never put the yuan as the major world currency!!!!! for me china can go to freaking hell and i am praying for collapse for good.

  14. michael Reply

    June 30, 2015 at 10:09 am

    The IMF is just another Central Bank owned by all the other owners of the other Central Banks. All countries have private owned banks except Cuba, North Korea and Iran. The FED in New York and the central bank in London are both selling China Gold plus china mines 117 million ounces of Gold a year to add to their stockpiles. They have more gold than we do. There are other factors but the chinese Yuan will be added to the basket of currencies weather you want it to happen or not. When it does the U.S. dollar will use alot of value if it doesn’t happen before from the extremely fragile BOND market (Scarce liquidity). As far as any one president printing money or causing the debt to jump by massive amounts thats noise from the other side. The climbing amounts are from programs past by the current and past presidents. The Rothschilds wealth in 1900 was considered to be half the worlds wealth. Then just imagine you own a large percentage of central banks and you just add zero’s and one’s in a computer when someone borrows money, then they back the debt the 0’s and 1’s get erased and they keep the intrest. Buffet and B. Gates 70 billion Rothschilds over 100 trillion $’s. The debt system only works if more debt is added on and the world is debted out, except china and a few little outfits. As for as believing the gov. amendment 114 section 501 of the NDAA passed by the house 2012 says that the gov. now can use propaganda against the U.S. citizens. They are and have been lying about the economy and whose responsible for the terrorism, Iran, Ukraine, Russia and a plethora of other things like drugs and who brings them into the country and what they do with the money, WHY THEY GO TO WAR, and i’ll have to stop here or I’ll go on for ever. When people find out that “All Wars Are Banker Wars” they will be able to see the light. SEE on youtube “HOW THE ROTHSCHILDS TOOK CONTROL OF AMERICA” and that will be just the start of the info you will find out. Conspiracy Theorist was invented for people that can see thru the BULLSHIT.

    • tuckchristine Reply

      October 19, 2015 at 2:34 am

      Have you read.. “The Creature from Jekyll Island”?

  15. Revolutionaryone Reply

    August 1, 2015 at 7:51 am

    F##K Rick and has fkn propaganda BS! He was the first one to comment after receiving first hand notifications of a red flag alert that could possibly convince hard working Americans into preparing ahead of time; like these bottom feeding snakes. YES the yuan will enter the world currency exchange. And YES, I will have money set aside for what I call a power move. As should everybody. The reason why this is not in light yet is because lizards are trying to mask it in order for them to move first… well not this time. The banks are trying to move first so the rich get… you know the saying. This topic has been talked of underground for years China is ready and we should be too. Stay Enlightened and READ!! For Ever The Revolution. Stay Safe!

  16. tuckchristine Reply

    October 19, 2015 at 2:22 am

    I can’t believe the people on posts like this that believe that the U.S.A is a democracy. Did they not learn anything in school? We are a REPUBLIC. Try saying the pledge to the flag. It does not say “and to the “democracy” for which it stands”. And it sounds so stupid when the U.S.A. wants to spread “democracy” around the world, when the U.S.A. itself is not a democracy!!!!

  17. tuckchristine Reply

    October 19, 2015 at 2:36 am

    Please, read the book “The Creature from Jekyll Island”. It will enlighten you on what has been happening the last 100+ years.

  18. tuckchristine Reply

    October 19, 2015 at 2:38 am

    Nixon put the last nail in the coffin for the Federal Reserve note, aka US dollar. He took it completely off the gold standard.

  19. tuckchristine Reply

    October 19, 2015 at 2:41 am

    The only presidential executive order that never was followed was Kennedy’s Executive Order 11110. He was killed shortly after he signed it. Reagan eventually revoked this order with E.O. 12608.
    Check out what Executive Order 11110 was!!!! This is why Kennedy was shot!!!

  20. Real truth Reply

    October 19, 2015 at 8:10 pm

    I have read everyone’s post’s and here is plain and simple truth I love the U.S but the people people pretending to run it have pulled us into something from which there is no escape the united States of America is nothing more than global bank robers and now the US dollar is going to collapse along with that the US economy and before that happens or possibly after we will start a war with China or Russia because war makes money and the 18 trillion something dollars that we were are in debt for that’s only counting the Federal Reserve that is not counting anything else in the US are true estimated debt is almost 46 trillion dollars and even if inflation went up to 20% there would be no way to pay it off not even in 200 years right now as it stands we would not even be able to cover the interest alone on our debt so there’s basically one solution do United States people and malicious need to take our country back from our corrupt politicians and state our Constitution and hand every one of them over for prosecution to the countries that they defrauded and stoled from and basically we have to start from the ground up and that’s just for starters

  21. Taz Reply

    October 27, 2015 at 4:58 am

    What you all appear to be overlooking is the fact that China’s stock market is in worse shape than the NYSE. Beyond that they have been on a building spree that has resulted in many cities being erected from scratch that are not now and never will be occupied. They have created a housing bubble that makes 2008 look like a picnic. There are also whole subdivisions in the USA that have never been occupied and are now being razed due to their deterioration and China will be doing that to entire cities within the next decade. China’s exports are also inferior products and their economy will eventually take a big hit when the world wakes up and stops buying cheap shoddy Chinese merchandise. And for the US debt, you can lay that at the feet of Ronald Reagan. When he took office the national debt was less than one trillion dollars. He spent trillions on defense programs that no utility for the express purpose of driving the USSR into bankruptcy. The list of insane behavior from past presidents is too long to address here, but do some historical research and then draw your conclusions. There is way too much emotion and not enough rational thought here.

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