TOKYO (Reuters) - China is pushing for the yuan to be added to the basket of currencies that comprise the IMF’s special drawing rights, aiming for its inclusion in 2015, Japanese daily Sankei Shimbun said on Saturday.
Chinese central bank governor Zhou Xiaochuan caused a stir last March by proposing the Special Drawing Rights (SDR), the International Monetary Fund’s in-house unit of account, might eventually displace the dollar as the world’s main reserve currency.
The SDR’s value is based on a basket of four key international currencies, currently the euro, yen, sterling and the dollar. The basket composition is reviewed every five years, with the next review coming up in late 2010.
Chinese currency authorities are pushing for the yuan to be included in the SDR’s currency basket, and are aiming for its inclusion when the basket composition comes up for review again in 2015, the Sankei Shimbun quoted an international monetary source as saying in a story out of Washington.
The Chinese currency authorities have already expressed their intent to countries such as the United States and Britain, Sankei cited the source as saying.
The idea faces some hurdles, however, Sankei said.
For example, China would have to liberalize capital transactions, and the U.S. government may not agree to such a proposal unless China revalues the yuan against the dollar, the newspaper said.
China’s central bank pledged on Saturday to keep the yuan’s exchange rate basically stable in 2010 and said it would be flexible in implementing its fairly loose pro-growth monetary policy.
Reporting by Masayuki Kitano; Editing by Bill Tarrant