The Significance of RMB Joining sdr Currency Basket
China joined the International Monetary Fund and distributed some funds to its member countries. China's SDR quota is US$ 6,369.2 million, and that of the United States is US$ 3,765.438 million+US$ 49.3 million. Many people don't understand what it means to join SDR. The significance of joining SDR lies in: First, RMB internationalization can promote reforms, including interest rate marketization reform, exchange rate marketization reform, capital market reform, regulatory reform and even political reform. Secondly, after the internationalization of RMB, the exchange rate risk in China has been greatly reduced, which can help enterprises to go abroad and develop foreign trade. Third, after the internationalization of RMB, international seigniorage can be levied, which is equivalent to the China government printing money to buy global goods. In fact, before joining SDR, transactions between some Southeast Asian countries, such as South Korea, Russian Federation and China, had been denominated in RMB and included in SDR, but the IMF's recognition of RMB as an international settlement currency has far more political significance than practical significance.