Taipei
CHINA is about to deal another blow to Australian bonds as the yuan's ascent into the International Monetary Fund's reserves diverts investments from Aussie-dollar assets.
The IMF signalled that it will include the yuan as the fifth currency in its Special Drawing Rights basket this month, a stamp of approval for China's progress in internationalising the currency.
Standard Chartered Plc estimates up to US$1.1 trillion will enter the nation in the next five years due to the endorsement. One casualty of such diversification will be the Australian dollar, according to Credit Suisse Group AG, BNP Paribas SA and Mizuho Bank Ltd.
The IMF's decision "could have more impact on those currencies acting...