Now the world's second largest economy will add its currency to the elite SDR basket. Until recently, it was believed that the yuan was controlled too tightly to be included on the list of world reserve currencies.
Nevertheless, the yuan will be formally accepted into the elite circle of "Special Drawing Rights" - the basket of IMF currencies - at the end of the month. This is an important milestone for China, and the Celestial Empire is close to obtaining global economic power.
IMF chief Christine Lagarde said that the yuan now meets the requirements for a freely usable currency. The yuan will thus join the company of the yen, the dollar, the pound and the euro.
The yuan made headlines in August when China's Central Bank devalued the currency. The move sent markets into a tailspin, as investors took it as a sign of slowing economic growth in China. Yet, it was revealed that such reforms took the yuan closer to SDR.
"China believes that the inclusion of the yuan in the SDR basket will enhance the representativeness and will improve the existing international monetary system. The move will have win-win benefits for both China and the world," officials with the People's Bank of China said.
Noteworthy, Russia intends to actively use national currencies in energy resources trade with China and other countries. Russian President Vladimir Putin said: "In the future, we intend to make active use of national currencies in energy trade and other forms of trade with both China and other countries of the world."