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Making Renminbi a World Currency would not be Bad for Euro

December 1, 2015 • GLOBAL ECONOMY, FINANCE & BANKING, China, Dan Steinbock, Europe, Global Capital Markets

By Dan Steinbock

The International Monetary Fund (IMF) will decide this month whether to make the Chinese Renminbi the fifth international reserve currency. For the Euro, that would not be a win or lose game.

Behind the facade, there has been much debate about the inclusion of the Chinese currency – the Renminbi (RMB) – as the fifth international reserve currency.

Initially, Beijing hoped that, after the International Monetary IMF long-anticipated November meeting, the RMB could be added into the international currency basket by 1 January, 2016.

After China’s growth deceleration, and the boom and correction of its equity markets, the Fund’s experts recommended in early August that the IMF would delay its RMB inclusion until September 2016.

The IMF meeting will take place at the end of November. What will the decision – whatever it will be – mean to the Euro?

 

 
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