Economist Robert Mundell: Add Renminbi to IMF Reserve

November 19, 2010

Hong Kong, Nov 19, 2010. Nobel Prize-winning economist Robert Mundell says China’s currency has strengthened to the stage where it is “almost de facto convertible” and should be included in the international reserve basket held by the International Monetary Fund (IMF). “The world’s theoretical currency is the Special Drawing Rights (SDR) of the IMF, a basket of major currencies that includes the US dollar, the euro, the pound sterling and the yen. China has not been in this and should be,” said Professor Mundell, predicting that the renminbi is likely to be central to the IMF SDR review in 2011. [MarketWatch.com]

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