The yuan’s inclusion in the International Monetary Fund’s Special Drawing Rights solidifies China’s place as the world’s third-largest economic superpower, behind the United States and the European Union. At first blush, the IMF’s decision appears little more than a symbolic triumph for China. But as this thought-provoking article from economist Enrico Colombatto reveals, the decision may be far more significant for China and the global economy’s future than many expect. getAbstract recommends this brief but cogent essay to policy makers and executives.
In this summary, you will learn
- What the yuan’s inclusion in the International Monetary Fund’s Special Drawing Rights means for China,
- What conditions the country must fulfill to have the renminbi achieve major currency status in world markets and
- How the IMF’s decision could affect global finance.
About the Author
Enrico Colombatto is an economics professor at the University of Turin, Italy.