International Monetary Fund includes Renminbi in Special Drawing Right currency basket
Clearstream Banking1 would like to inform customers that on Monday 30 November 2015 the International Monetary Fund (IMF) decided to include the Renminbi (RMB) into the Special Drawing Right (SDR) currency basket.
From 1 October 2016 the RMB will be included in the SDR basket as a fifth currency, along with the U.S. Dollar, the Euro, the Japanese Yen and the British Pound. The weight of the RMB in the SDR basket is 10.92%. The IMF’s decision is a further milestone underpinning the accelerating RMB internationalisation process.
The SDR currency basket has been a denomination currency in Clearstream Banking for many years. Interested issuers are able to issue SDR-denominated securities via Clearstream Banking. The ISO 4217 Currency Code used in all Clearstream transactions is XDR.
Having the SDR currency basket as a denomination currency was and is more than ever part of Clearstream Banking’s strategy to support issuers across the globe through its Global Issuance Hub. Today we support issuance in 99 denomination currencies, with full cash settlement capabilities in 44 of them. Since the creation of the offshore RMB, Clearstream Banking has been offering comprehensive RMB related services covering issuance, settlement, custody and cash management. The inclusion of the RMB into the SDR currency basket allows us to further expand its RMB offering.
Special Drawing Rights are international reserve assets that supplement the official money reserves of member countries, providing extra credit and liquidity to the international market. SDRs are not a currency themselves but can be used to potentially claim the equivalent value of the five currencies in the SDR basket: the Euro, the Japanese Yen, the British Pound, the U.S. Dollar and the Renminbi (as of 1 October 2016). The IMF’s decision to include the RMB into the SDR currency basket marks a major economic milestone for the emerging world power China and will likely accelerate global demand for Chinese assets.
Refer to Clearstream’s eligible currencies for the full list of eligible currencies.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.