Chinese Yuan Becomes Official Reserve CurrencyFinance | October 1, 2016, Saturday // 12:51| views
The Chinese yuan officially joined the USD, the Euro, the Japanese Yen and the British Pound Sterling as a global reserve currency.
This is an extremely important moment for Beijing in securing greater influence on the international stage, reported Reuters.
The yuan is being included in the basket of IMF reserve currencies on the day China celebrates the creation of the Chinese People’s Republic in 1949.
This step is not expected to affect global markets since it was announced last year, but it will place the not-so-transparent economic and financial policy of Beijing in the international spotlight because central banks will add assets in yuans to their official reserves.
China surprised global markets by devaluing its currency last year. As of then, the exchange rate of the yuan decreased to a near 6-year minimum which is another reason to worry considering weak global growth as it is.