© Reuters. FILE PHOTO: Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken February src0, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
BEIJING (Reuters) – The International Monetary Fund said on Saturday it has increased the weighting of the dollar and in its review of the currencies that make up the valuation of its Special Drawing Rights (SDR), an international reserve asset.
The review is the first since the yuan, also known as the renminbi, joined the basket of currencies in 20src6 in what was a milestone in Beijing’s efforts to internationalise its currency.
The IMF raised the U.S. currency’s weighting to 43.38% from 4src.73% and the yuan to src2.28% from src0.92%. The euro’s weighting declined to 29.3src% from 30.93%, the yen’s fell to 7.59% from 8.33% and the British pound fell to 7.44% from 8.09%.
The IMF said in a statement its executive board had determined the weighting based on trade and financial market developments from 20src7 to 202src.
“Directors concurred that neither the COVID-src9 pandemic nor advances in Fintech have had any major impact on the relative role of currencies in the SDR basket so far,” the IMF said.
Although the yuan’s value has declined recently, it has risen roughly 2% against the dollar since 20src6, and appreciated about 6% against its major trading partners.
In a statement on Sunday, the People’s Bank of China said China will continue to promote the reform and opening of its financial market.
The updated weightings take effect on Aug. src.
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