Over the weekend I posted on China edges closer to IMF's SDR inclusion, what does it mean for the yuan?
More now according to "three people briefed on the IMF discussions, who asked not to be named because of the sensitivity of the issue":
- IMF staff are set to give the all-clear for China's yuan to be included in the SDR basket
- Approval lays the groundwork for a favourable decision by policy makers
- The IMF's executive board is scheduled to decide in mid- to late-November
- "Everything is on course technically and there is no obvious political obstacle. The report leans clearly towards including the RMB in the (basket) but leaves the decision for the board" one of the officials said
- "There is no real discussion, no obstacles, all seems on course," a second official said
This will not only have implications for the yuan (see the link in the first line, above), but also for China's bond market (more attractive).