RMB will be included in SDR on National Day in 2016, did you know

Starting from October 1, 2016, the decision to formally include the RMB into the IMF's Special Drawing Rights (SDR) currency basket came into effect, becoming the third largest currency in the SDR basket. The addition of the RMB will help enhance the representativeness of the SDR and help improve the current international monetary system. It is a win-win result for China and the world. Let the editor of Legal Savior Network take you to see what SDR is!

1. Concept

SDR , the Special Drawing Rights, is an international reserve asset created by the International Monetary Fund (IMF) in 1969. It is not a monetary form, nor is it a claim on the IMF, but a potential claim against IMF member countries.

2. Scope of application of SDR

1) Use

1. It is only a nominal reserve currency held by central banks of various countries;

2. It is only used between central banks of various countries. Transactions;

2) Three cannot

1. Cannot be held by any individual or institution;

2. Cannot be traded in the global foreign exchange market;

3. Cannot be used for international or investment purposes Transaction;

3. After the RMB joins the SDR, it will have a profound impact on all aspects of everyone by affecting the macroeconomic environment and policy levels.

1. It can reduce the shrinking pressure on Chinese people's "money bags";

2. Travel, Study tours and overseas shopping may become more convenient;

3. Cross-border investment may become easier;

The above is the relevant knowledge explained to you by the editor of Legal Savior Network: "Did you know that the RMB will be included in the SDR on National Day in 2016?" After the RMB is added to the SDR, it will achieve a breakthrough of zero currency weight, reaching 10.9%. Becoming the third largest in the SDR basketMonetary policy, its status is second only to the dollar and the euro. If you are interested in this aspect, you can seek legal consultation on this website. We have professional lawyers to provide you with online legal consultation services.