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1 Apr 2015
Yuan not ready for IMF blessing as reserve currency – MP
FXStreet (Barcelona) - Stuart McPhee, Currency Technical Analyst at MarketPulse, notes that IMF views that China needs to loosen its financial controls before the Yuan could be included in the basket of reserve currencies.
Key Quotes
“U.S. Treasury Secretary Jacob J. Lew said China needs to loosen its financial controls before the yuan can qualify to be included in the IMF’s basket of reserve currencies.”
“Lew urged China to ease restrictions on the flow of capital and the setting of interest rates to ensure the yuan is increasingly used as an international currency."
“Countries including Germany and France have supported China’s bid to be included in the basket, and IMF Managing Director Christine Lagarde has said the question is when, not if, the yuan qualifies.”
Key Quotes
“U.S. Treasury Secretary Jacob J. Lew said China needs to loosen its financial controls before the yuan can qualify to be included in the IMF’s basket of reserve currencies.”
“Lew urged China to ease restrictions on the flow of capital and the setting of interest rates to ensure the yuan is increasingly used as an international currency."
“Countries including Germany and France have supported China’s bid to be included in the basket, and IMF Managing Director Christine Lagarde has said the question is when, not if, the yuan qualifies.”