The International Monetary Fund (IMF) announced today (1 December) that the IMF Executive Board decided at its meeting on 30 November to include the renminbi (RMB) in the Special Drawing Rights (SDR) basket. HKMA welcomes the IMF’s decision.
“The IMF’s decision confirms that RMB is a freely usable currency and also enhances the representativeness of the SDR. It marks a key milestone in RMB internationalisation. Being the largest offshore RMB business centre with close economic and trade ties with Mainland China, Hong Kong should seize this historic opportunity and continue to strengthen our financial market infrastructure, as well as upgrading our talent pool and products. I believe Hong Kong can continue to play a pivotal role of bridgehead and financial hub in the process of Mainland’s further opening up its financial markets and RMB internationalisation”, said Mr Norman Chan, Chief Executive of the HKMA.
The SDR is an international reserve asset created by the IMF. Its value is based on a weighted average of the value of a basket of currencies, currently comprising the US dollar, euro, pound sterling and Japanese yen. The IMF Executive Board reviews the composition of the SDR basket every five years to ensure that it reflects the relative importance of currencies in the world’s trading and financial systems. At its Executive Board meeting held on 30 November, the IMF decides to include RMB in the SDR basket. The new SDR basket will be effective from 1 October 2016.
Hong Kong Monetary Authority
1 December 2015