Euro to Bear Brunt of Yuan's Inclusion in Reserve-Currency Club
- IMF taking from the euro to give to China, Borthwick says
- Shared currency has dropped 13% this year, most in a decade
New Dawn for China as Yuan Joins Majors
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The euro’s worst year in a decade is looking even grimmer after the Chinese yuan’s inclusion in the International Monetary Fund’s basket of reserve currencies.
The 19-nation currency’s weighting in the IMF’s Special Drawing Rights basket will drop to 30.93 percent, from 37.4 percent, the organization said Monday. The yuan will join the dollar, euro, pound and yen in the SDR allocation from Oct. 1, 2016, at a 10.92 percent weighting.