On the Inclusion of the Chinese Renminbi in the SDR Basket

descriptionPublicationkeyboard_double_arrow_right Article , Research , Preprint 01 Jan 2012 France English Publisher:Elsevier BVJournal:SSRN Electronic Journal (eissn: 1556-5068,

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Authors: Bénassy-Quéré, Agnès; Capelle, Damien;

doi: 10.2139/ssrn.2174927 , 10.1016/j.inteco.2014.03.002

handle: 10419/67520

On the Inclusion of the Chinese Renminbi in the SDR Basket

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Abstract

This paper studies the impact of a broadening of the SDR basket to the Chinese currency on the composition and volatility of the basket. Although, in the past, RMB inclusion would have had negligible impact due to its limited weight, a much more significant impact can be expected in the next decades. If the objective is to reinforce the attractiveness of the SDR as a unit of account and a store of value through more stability, then a broadening of the SDR to the RMB could be appropriate, provided some flexibility is introduced in the Chinese exchange-rate regime. This issue of flexibility is de facto more important than that of "freely usable" to make the SDR more stable, at least in the short and medium run.

Country

France

Related Organizations

French National Centre for Scientific Research
France
École Normale Supérieure
Burundi
Pantheon-Sorbonne University
France
Université Paris Cité
France
Centre d'Économie de la Sorbonne
France

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Keywords

330, Welt, Währungskorb, Renminbi, International monetary system, SDR;renminbi;IMS;Foreign exchange volatility;China, renminbi, F33, SDR, [SHS.ECO] Humanities and Social Sciences/Economics and Finance, F31, Foreign exchange volatility, ddc:330, SDR, renminbi, international monetary system, foreign exchange volatility, JEL: F - International Economics/F.F3 - International Finance/F.F3.F31 - Foreign Exchange, [SHS.ECO]Humanities and Social Sciences/Economics and Finance, Wechselkurs, Volatilität, international monetary system, SDR,renminbi,international monetary system,foreign exchange volatility,volatilité des taux de change,système monétaire international,DTS, JEL: F - International Economics/F.F3 - International Finance/F.F3.F33 - International Monetary Arrangements and Institutions, Sonderziehungsrechte, foreign exchange volatility, jel: jel:F31, jel: jel:F33

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