Changchun, December 2 (http://www.chinactv.com)—The board of International Monetary Fund (IMF) voted Monday to include China’s currency in the basket of currencies on October 1, 2016, which marks that RMB after US dollars, euros, Japanese yen and pounds will become a member of SDR basket, the first of its kind among emerging market economies.

The SDR is the abbreviation of Special Drawing Rights (SDR), which are supplementary foreign exchange reserve assets defined and maintained by the IMF in 1969. Their value is based on a basket of key international currencies including U.S. dollars, eruos, pounds and Japanese yen. Insiders point out that the integration of China’s currency into the club of SDR is conducive to making SDR more representational and attractive and optimizing the current system of currencies. In the meantime, the result is the recognition of the international community about the economic development of achievement in reform and opening up of China. It is also a win-win result, and an important progress in the internationalization of RMB. Ding Yibin, Dean of International Economy and Trade, School of Economics of Jilin University, said: “The integration into the club of SDR is a big stride for RMB to go international, but it does not necessarily mean that RMB has reached the goal of going international. So, I would say that there is still a long way ahead.”

Joining the club will make RMB more easily exchangeable with foreign currencies. Put it simply, there is no need to exchange foreign currencies before traveling abroad. In addition, it will be more convenient for Chinese investors to invest abroad in real estates, stocks and funds, and for Chinese enterprises to invest, trade, acquire, merge, purchase resources, labors and techniques, etc. Experts say the after having RMB integrated into the club of SDR China will continue pushing forward financial reform steadily, and optimizing foreign exchange rate formation mechanism, financial institution reform and company management structure. So it will bring about big impacts on domestic economy. Ding Yibo said: “Due to the fact that foreign exchange rate and interest rate are the same, which is an important price indicator in financial market, so I think there might be certain impacts on our assent markets including stock market and real estate market. For stock and real estate markets, however, are pillared more by our actual needs, and the real performance of enterprises.”