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Will the yuan make it to the IMF basket?
Perceptions and trust are perhaps the true designators of a reserve currency, not macroeconomic fundamentals or economic idealism.
Any inclusion of the renminbi would likely be grounded more in symbolism and politics than economics and amount to no more than 15 per cent compared with the 42 per cent for the dollar.
PHOTO: AFP
Jakarta
WITH the US Federal Reserve poised to hike interest rates soon amid a sea of devaluing currencies and quantitiative easing, the US dollar has became the defacto currency of choice among nations. The dollar accounts for nearly 90 per cent of all foreign-exchange transactions.
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