Noyer: IMF’s decision on SDR not politically motivated
Banque de France governor says composition is based on technical work
When the International Monetary Fund decides on the composition of its special drawing rights (SDR), it "should not be seen as politically inspired or motivated", according to Banque de France governor Christian Noyer.
Speaking in Montréal on June 8, Noyer drew a distinction between a reserve currency and a global currency, noting that one must act as a store of value, the other as a medium of exchange. "A currency may be widely used in transactions without being considered for reserve accumulation," he said.
This distinction, he said, could be relevant when reviewing the SDR, which the IMF is due to do before the end of the year. "This is highly technical work. And so should be the decision. While the symbolism may be strong for some observers, the decision – whatever it is – should not be seen as politically inspired or motivated," he said.
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