RMB inclusion in SDR basket done deal – TDS

By FXStreet FXStreet (Bali) – TD Securities considers the RMB inclusion as part of the fund’s SDR reserve−currency basket a done deal.

Key Quotes

“TD considers RMB inclusion a done deal following the IMF’s after-market press release on Friday stating the Executive Board assessed the RMB as ‘freely usable’. Formal confirmation of RMB inclusion into the SDR basket will be received on November 30th.”

“All else equal, this news should be bullish for CNY and CNH in the short term. Weekend developments suggest CNY and CNH outperformance vs the region is more likely as opposed to outright outperformance vs the USD.”

“Friday’s announcement does little to materially change the currency fundamentals or fundamental demand conditions, but does hasten the pace of capital market reform in China. This implies steadily improving access to Chinese assets for foreign participants over time.”
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Source:: FX Street