With the International Monetary Fund (IMF) today formally voting to include China’s currency in its benchmark SDR currency basket, effective next October, we are pleased to share with LeapRate readers the views expressed by Darryl Hooker, Global Co-Head of EBS BrokerTec, the electronic FX trading arm of interdealer broker ICAP plc (LON:IAP).
Darryl Hooker, EBS
Mr. Hooker notes:
Today’s decision by the IMF is a key milestone in the internationalisation of the currency. The speed at which the renminbi has reached major currency status on the global stage has been unparalleled. On the EBS market platform, USD/CNH is now a top 3 currency pair, up from top 15 in 2013. Average daily volumes in 2015 are double those executed in 2014, with counterparties from over 20 countries active every day. The SDR’s recognition of the renminbi as a reserve currency should only encourage this growth trend to continue.
To understand more about the group of currencies which make up the basket of the IMF’s Special Drawing Rights (SDR), click here.