Central Banking

Renminbi in central banking focus report 2022

The International Monetary Fund (IMF) announced on May 14, 2022 that it was increasing the weighting of the dollar and renminbi in the special drawing rights (SDR) – an international asset created by the IMF in 1969 to supplement its member countries’ reserve assets.

The formula for SDR weight looks at each currency’s share in exports, official reserves, foreign exchange turnover, international bank liabilities and international debt securities.

Last year, Central Banking looked at the impact the addition of the renminbi to the SDR basket has had on internationalising the Chinese currency. This year’s report looks more closely at the effect of inflation and the new free trade agreement among Asia-Pacific nations on parts of the SDR formula, with a focus on the renminbi’s share of central bank reserves.

 

Download the 2022 focus report in PDF format

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Renminbi and the special drawing rights

What impact does the renminbi’s increased weight and the $650 billion increase in the International Monetary Fund (IMF) special drawing rights (SDR) have for the role of the Chinese currency in reserve management?

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