The International Monetary Fund (IMF) has added the Chinese yuan to its group of international reserve currencies.
The news followed a vote of confidence during a meeting held by IMF managing director Christine Lagarde (pictured). Although the decision has now been made, the earliest date for inclusion is October 2016. China has lobbied for some time for inclusion in the Special Drawing Rights (SDR) basket, which currently contains the dollar, euro, pound, and the yen. SDR is an asset created by the IMF which is used for transactions between itself and central banks. In particular, it is used to decide the currency mix that countries receive when provided with aid. The basket has not changed...
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