The IMF’s boost to China’s currency is costing the world, ten years later A decade ago, the International Monetary Fund (IMF) agreed to include China’s renminbi in the basket of currencies that underlie its special drawing rights (SDRs).
What may sound like a monetary technicality to some was a milestone event: by elevating China’s currency to a status accorded only to the US dollar, euro, British pound, and yen, the international community gave China a unique seal of approval.
In terms of its long-term consequences, however, the international community’s decision was dubious and hotly debated even in 2016. And today, there is a growing sense that it may have planted the seeds for a more fragmented global monetary system.
Keeping a lid on
Despite China’s place as an emerging trading power, the renminbi in 2016 was no more important in government reserves than the Canadian and Australian dollars. Among tradable currencies, it had only a minor presence.
https://www.atlanticcouncil.org/blogs/econographics/the-im
2September 8, 2026 753 3
