Chinese yuan reserve currency

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    Chinese Yuan Could Give the IMF "a Shock It Isn't Prepared For"

    By , Associate Editor, Money Morning • @TaraKateClarke -

    On Monday, the Chinese yuan joined one of the most elite clubs on the planet: the International Monetary Fund's Special Drawing Rights basket of reserve currencies.

    IMF Managing Director Christine Lagarde said the yuan's inclusion was based on a clear indication of the reforms China has carried out.

    Of course, the IMF could be dead wrong.

    From a practical position, the IMF expects China will have to make its currency more freely tradable than it is - which, along with being a major exporter, is the other criteria the IMF considers in conferring reserve status on a currency, Money Morning Capital Wave Strategist Shah Gilani said on Monday. But there's a possibility the IMF jumped the gun on this.

    Dark horizons lay ahead if the Chinese yuan isn't stable enough to deserve its new global reserve status...

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Chinese Yuan Could Give the IMF "a Shock It Isn't Prepared For"

By , Associate Editor, Money Morning • @TaraKateClarke -

On Monday, the Chinese yuan joined one of the most elite clubs on the planet: the International Monetary Fund's Special Drawing Rights basket of reserve currencies.

IMF Managing Director Christine Lagarde said the yuan's inclusion was based on a clear indication of the reforms China has carried out.

Of course, the IMF could be dead wrong.

From a practical position, the IMF expects China will have to make its currency more freely tradable than it is - which, along with being a major exporter, is the other criteria the IMF considers in conferring reserve status on a currency, Money Morning Capital Wave Strategist Shah Gilani said on Monday. But there's a possibility the IMF jumped the gun on this.

Dark horizons lay ahead if the Chinese yuan isn't stable enough to deserve its new global reserve status...

Don't Let the IMF Fool You - It Had No Choice But to Add China's Yuan

By , Associate Editor, Money Morning • @TaraKateClarke -

The IMF just approved inclusion of China's yuan in its basket of global reserve currencies.

Of course, the IMF would have us believe it allowed the yuan into its basket, as though it was the one in control. Managing Director Christine Lagarde said the yuan's inclusion was based on a clear indication of the reforms China has carried out.

But the truth is the IMF had to include China's currency into its basket - sooner rather than later.

China doesn't need the IMF, all it wants is the legitimacy a reserve currency confers on the nation,Money MorningCapital Wave Strategist Shah Gilani said on Monday.

It's actually the other way around - the IMF is the one that needs the yuan. Here's why...

How Yuan Reserve Currency Approval Will Doom the Dollar

By , Associate Editor, Money Morning • @DavidGZeiler -

The IMF yuan reserve currency approval, announced today (Monday) by IMF Managing Director Christine Lagarde, has sealed the fate of the U.S. dollar.

As of Oct. 1, 2016, the Chinese yuan will become part of the International Monetary Fund's basket of reserve currencies, joining the euro, the Japanese yen, the British pound, and the U.S. dollar.

Here's what a dominant yuan reserve currency will mean for the U.S. economy...