Welcome to the multi-currency reserve system
Add BT as a preferred sourceSORRY about the mild panic on stock markets - so what else is new? - but financial practitioners and observers should really get wise about the renminbi. The fundamental point about the International Monetary Fund's move last year to admit the renminbi into the special drawing right (SDR) basket is so that the Chinese currency should not, and will not, be pegged directly to the dollar.
The writing has been on the wall for some time. Clearly, if the Chinese authorities want - as they certainly do - the renminbi to become a reserve currency, it cannot be equivalent to the dollar. If it was, there would be no point in the currency entering the SDR. A move towards dollar de-pegging has been the worst-kept secret in Beijing for years.
So there is no reason for the exaggerated fuss, now that the Chinese authorities have decided to keep the currency stable against a basket of 13 trading partners rather than the greenback.
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