IMF report endorses Chinese renminbi for currency basket

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A report by the International Monetary Fund recommended Friday that the crisis lender include the Chinese renminbi among the currencies that the Washington-based organization uses as a measure of value.

The IMF’s so-called currency basket is a daily average of the market exchange rates of the dollar, euro, yen and pound sterling, which is more stable than any of the individual major currencies alone.

The renminbi would be added to the existing four, if the IMF’s board approves the proposal on November 30.

The report by IMF staff finds that the renminbi “meets the requirements to be a ‘freely usable’ currency” and that it should be included in the currency basket, IMF chief Christine Lagarde said.

The report finds that the Chinese currency meets criteria based on exports and is freely usable and widely traded in major foreign exchange markets.

“I support the staff’s findings,” Lagarde said.

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