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Renminbi Reserve Status Still a Way Off Despite SDR Entry
The inclusion of the Chinese renminbi in the IMF's Special Drawing Rights (SDR) currency basket will have no immediate significant effect on the sovereign credit profile, says Fitch Ratings. New incremental demand for renminbi arising directly from joining the SDR is likely to be marginal, and it remains unclear to what extent it will boost broader long-term usage of the currency among reserve managers. In a scheduled five-yearly review meeting yesterday, the IMF's Executive Board decided that the renminbi will become the fifth member of the SDR basket beginning in October 2016, alongside the US dollar, euro, British ... (full story)