Views: 0 Author: Site Editor Publish Time: 2022-05-20 Origin: Site
Recently, the Council of the International Monetary Fund has completed the five -year special withdrawal right (SDR) fixed review review. The executive director will unanimously decide to increase the weight of the RMB from 10.92%to 12.28%, an increase of 1.36 percentage points.
This review is the first review since the RMB became the SDR basket currency in 2016. The executive director will unanimously decide to maintain the constant constitution of the existing SDR basket currency, that is, it is still composed of US dollars, euro, RMB, yen and pounds, and RMB will be renamed. The weights are raised from 10.92%to 12.28%, the US dollar weight is raised from 41.73%to 43.38%. At the same time RMB weights remain third. The new SDR currency basket was officially effective on August 1 this year, and the next SDR fixed review was carried out in 2027.
Increased RMB weights help enhance the attraction of RMB assets
Experts said that the increase in the weight of the RMB SDR currency basket helps to further enhance the international recognition and acceptance of the RMB and enhance the international attraction of RMB assets.
So, what is the significance of SDR in promoting economic development? Let's explain it popularly. For example, after receiving the newly distributed special withdrawal right, the IMF member central bank can continue to hold it as part of the foreign exchange reserves to enhance liquidity buffer and enhance the market reputation; it can also be particularly special. The withdrawal rights are sold to other members or designated holders, in exchange for free use of currency to pay imported products such as vaccines, or for public investment projects. IMF members can also use special withdrawal rights to repay the IMF loan and interest. During the 2008 international financial crisis, similar situations were in the new crown epidemic.