During the G20 summit in Turkey, IMF Managing Director Christine Lagarde said that the International Monetary Fund will carry out a set of reforms within the coming two months. In particular, these changes will concern the BRICS group of emerging nations seeking to obtain more power in the fund as well as the Chinese yuan.
IMF head Christine Lagarde discussed the matter with Russian President Vladimir Putin, who emphasized that Russia stood in favor of the initiative to reform the organization as proposed by a number of IMF member countries. In her turn, Lagarde promised that all proposals put forward will be considered, and the reform will finally be implemented in the next two months. The official also said that the question of adding the yuan to the Special Drawing Rights (SDR) currency basket will be decided at the meeting of the IMF Executive, due on November 30.
In case the yuan becomes an IMF reserve currency, it will have equal billing with the US dollar, pound sterling, euro and Japanese yen. Earlier, the International Monetary Fund released a statement acknowledging that the Chinese yuan meets the requirements of a ‘freely usable’ currency.
If the new changes in the fund’s rules are approved, they will come into force in October 2016.
