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Forex

Global status doing little to shore up softening yuan

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  © Reuters

TOKYO -- The yuan's long-awaited inclusion in the Special Drawing Rights basket has not kept the currency from falling, owing partly to new data showing that central banks have not significantly boosted their yuan reserves despite the change in status.

The International Monetary Fund added the yuan Saturday to the set of currencies used to determine the SDR's value. SDRs, a reserve asset allocated to member countries, can be exchanged for currencies in the basket in the event of a financial crisis or another shock. Inclusion in the basket -- now consisting of the dollar, the euro, the yen and the pound along with the yuan -- confers a degree of status as a global reserve currency.

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