by Marc Chandler
At the IMF/World Bank meetings this week, Chinese officials are again pushing for greater use of the IMF’s unit of account, Special Drawing Rights. It is China’s turn as the rotating host of the G20, which gives it greater influence over its agenda.
For its part, the IMF is concerned about global financial stability and must be open-minded. It wants to strengthen the financial system. It is only prudent to examine all reform ideas.
Last September, the IMF agreed to include the yuan in the SDR as of later this year. It was seen primarily as a symbolic recognition of how far China’s economy and financial sector has evolved over the last five years. The desire to join the SDR also encouraged China to proceed with various financial reforms.