IMF pushes for fully convertible yuan

3 July 2012

After high-level talks in May, Chinese vice premier Wang Qishan announced US support for the inclusion of the yuan in the currency basket for the IMF’s special drawing right, the international reserve asset issued by the Fund. While this supports Chinese plans to make the yuan an alternative reserve currency alongside the US dollar and the euro, IMF recommendations for China to speed up the move to convertibility and fully open its capital account have attracted domestic criticism. Li Daokui, an advisor to the People’s Bank of China, argued in November that “China shouldn’t accept other countries’ timelines or conditions for the inclusion of its currency” and noted that the process of opening could take another ten years.