by James Rickards
Daily Reckoning
The construction of the IMF’s special drawing rights (SDRs) valuation basket is reviewed every five years by the IMF Executive Board. But it can be changed more or less frequently at the Executive Board’s discretion.
The new effective date for the revised basket is midnight on Sept. 30, 2016. China is its newest addition.
Membership in the exclusive SDR currency club has changed only once in the past 30 years.
That change took place in 1999, and was purely technical due to the fact that the German mark and French franc were being replaced by the euro.