Kenya's Central Bank chief hails China's entry into IMF's elite currency club
04 December 2015, 19:17
Nairobi - Kenya's apex bank has lauded the move by
International Monetary Fund (IMF) to add China's yuan to its elite
basket of reserve currencies, saying it will increase use of currencies
in the international platform.
The Central Bank of Kenya (CBK) governor Patrick Njoroge said the
decision by IMF to include Renminbi (RMB) alongside the dollar, euro,
pound and yen in the fund's reserve-currency basket will make the
Chinese currency more visible around the world as one of the major
currency to use.
"It is now official that banks globally can use RMB as a reserve
currency with confidence," Njoroge told Xinhua in Nairobi. This is the
first time in over 15 years that the list of currencies comprising the
Special Drawing Right (SDR) has been altered.
The inclusion, which marks another step in China's global economic
emergence, came after the IMF evaluated the Asian nation's standing as
an exporter and the yuan's role as a "freely usable" currency.
The fund's Chief Executive Christine Lagarde said while making the
approval that the decision was an important milestone in the integration
of the Chinese economy into the global financial system.
Lagarde added that it is also recognition of the progress that the
Chinese authorities have made in the past years in reforming China's
monetary and financial systems.