IMF Special Drawing Rights, a key to making Chinese Renmibi a global reserve currency
The IMF special drawing rights basket is currently under review for changes, to be finished with their review in 2015. John McCormick, Chairman of RBS APAC seems to think that China will push hard for the Renminbi to be placed within that basket, instantly, giving almost all countries, even those that don't trade directly with China, a strong incentive to increase their international reserves in the Chinese currency. Via RBS:
the International Monetary Fund is reviewing its special drawing rights basket, which uses four key international currencies to supplement member countries’ official reserves and bolster liquidity.
The deadline for completing that review is 2015. Based on where we see the G7 countries today, we believe there’s a very strong chance that China can get the onshore version of RMB, CNY, into that basket – a real boost to the currency on the world stage.