Today’s news is a historic milestone. The dollar’s days are numbered, and the new global economic order is shifting into place.
As many insiders have expected, China has now officially gained status among the world reserve currencies, taking place alongside the dollar, the euro, the pound and the yen.
The IMF decided to grant this upgrade as a result of financial and monetary benchmarks that Chinese leaders worked towards during the past several years. Its implications run deep.
The International Monetary Fund on Monday, as expected, admitted China’s yuan into its benchmark currency basket in a victory for Beijing’s campaign for recognition as a global economic power.
The IMF executive board’s decision to add the yuan, also known as the renminbi, to the Special Drawing Rights (SDR) basket alongside the dollar, euro, pound sterling and yen, is an important milestone in China’s integration into the global financial system and a nod to the progress it has made with reforms.
IMF chief Christine Lagarde, who along with in-house experts has previously backed the move, made it clear she did not expect Beijing to stop there.
‘The yuan’s inclusion is a largely symbolic move, with few immediate implications for financial markets. But it is the first time an additional currency has been added to the SDR basket and the biggest change in its composition in 35 years.
Below is IMF chief Christine Legarde’s statement on the new benchmark of global currency, and what will inevitably be a resettling for the people affected by it – not least the American people who could see a significant decline in their living standard after an era of economic supremacy that the United States has enjoyed since the end of WWII:
This post was published at shtfplan on November 30th, 2015.