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Now's the time to formulate an RMB strategy

Expect significant inflows into renminbi, now that it is a global reserve currency here.

By far the most significant direct effect from the RMB's inclusion on currency flows will come from multilateral institutions, which will need to rebalance their balance sheets, now SDR-denominated, to include the RMB.

FOLLOWING the announcement in November that the renminbi (RMB) meets the criteria of the International Monetary Fund (IMF) to become a "freely usable" currency, the IMF executive board has now formally decided to include the currency in its Special Drawing Rights (SDR) basket of currencies from...