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IMF allows Chinese yuan to enter the jet set currency club

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By Euronews
IMF allows Chinese yuan to enter the jet set currency club

<p>The <span class="caps">IMF</span> has accepted the Chinese yuan into the club of elite currencies.<br /> <blockquote class="twitter-tweet"tw-align-center lang="en"><p lang="en" dir="ltr">IMF set to put yuan in reserve currency basket <a href="https://t.co/h7quutjx6y">https://t.co/h7quutjx6y</a> <a href="https://t.co/w7meHPtER0">pic.twitter.com/w7meHPtER0</a></p>— Press TV (@PressTV) <a href="https://twitter.com/PressTV/status/670905537169637377">November 29, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></p> <p>It marks a turning point for China and its acceptance as a global economic power.</p> <p>Managing director of the <span class="caps">IMF</span> is Christine Lagarde:“The addition and the inclusion of the renminbi in the <span class="caps">SDR</span> basket of currencies is a recognition of the significant reforms which have been conducted, of the significant opening up of the Chinese economy, of the financial, more market-driven principles that are being used by the Chinese authorities going forward.”</p> <p>For Beijing this is about prestige and will allow China to challenge the economic dominance of the US.<br /> <blockquote class="twitter-tweet" lang="en"><p lang="en" dir="ltr">The IMF is on the verge of labeling China’s yuan a reserve currency: <a href="https://t.co/aaj3Xf79W2">https://t.co/aaj3Xf79W2</a> <a href="https://t.co/6DOanN7V1h">pic.twitter.com/6DOanN7V1h</a></p>— WSJ China Real Time (@ChinaRealTime) <a href="https://twitter.com/ChinaRealTime/status/671291107427397632">November 30, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></p> <p>The yuan joins the dollar, euro, pound and yen in the basket.</p> <p>The <span class="caps">IMF</span> decision, which comes into effect towards the end of 2016, is largely political to be used as a tool to encourage economic changes within the world’s second largest economy.<br /> <blockquote class="twitter-tweet"tw-align-center lang="en"><p lang="en" dir="ltr">IMF to make China's Yuan reserve currency after Monday vote <a href="https://t.co/2ie3AdBMAO">https://t.co/2ie3AdBMAO</a> <a href="https://t.co/izlN6nt7K1">pic.twitter.com/izlN6nt7K1</a></p>— Sputnik (@SputnikInt) <a href="https://twitter.com/SputnikInt/status/671121495268003841">November 30, 2015</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script></p> <p>It also allows closer scrutiny of the currency as the government begins a liberalisation of its tightly controlled exchange rate and financial system.</p>