China’s State Administration of Foreign Exchange has announced that the nation is to bring its Current Account reporting in line with International Monetary Fund standards. This will mean that all its reserve assets, including its gold reserve, which is widely believed to be far greater than the 1,054.6 tonnes currently reported to the IMF, will fall under one accounting headline. China, in the past, has reported its reserve assets as a separate item, somewhat parallel to its reporting of its trade account and financial accounts, according to an article in the South China Morning Post.
Bringing its accounts into line with an IMF standard is seen as part of China’s desire to have the yuan included in a revised Special Drawing Right calculation, as the IMF is currently entering internal discussions with its members on a possible restructuring of the SDR – the results of which are due to be announced later this year, and come into force at the beginning of 2016. This again is seen as part of a possible move en route to the yuan being regarded as a global reserve currency.
This post was published at LAWRIEONGOLD